In our era of rapid globalization, risks are interconnected that much is obvious. Far less obvious is how businesses can adapt to this new reality in their strategic planning and daily operations. Today, risks that could previously be managed individually can have a multiplier effect when interconnected. That's why floods in Thailand can stop automotive production lines in the U.S. Effective risk management needs to take these interdependencies into account. To do this, a holistic approach to risk management is required.