APPENDIX B
Risks and the Hit-the-Wall Scenario
How to Manage Volatility

CHINA AND INDIA ARE NOT SURE bets. They are fraught with risks and dangers. The leaders of these countries must confront massive challenges in the decade ahead, and success is not guaranteed. Corruption, asset bubbles, political and social disharmony, pollution, natural disasters, and political and economic conflict—these pose serious threats to growth and prosperity (figure B-1). Companies must navigate these markets with their eyes open. Successful companies will work to mitigate risks while remaining committed to winning and not retreating. They will also actively engage governments and stakeholders to influence events and reduce risks.

China’s and India’s growth projections ...

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