Systems thinking is essential in tackling the increasingly interconnected and complex problems in companies and the financial system today and is increasing being used by actuaries. Systems Dynamics is a key tool in the system thinker’s toolbox and deals with how thing change through time, which includes much in business and society. It uses modelling and computer simulation to take the knowledge we already have about details in the world around us to show why our social systems behave the way they do, and how to improve the situation. The talk will cover the methods used to visualize and map how the parts of an enterprise fit together. The map will be transformed into a simulator to reliably compute unfolding futures. This step reveals the consequences, risks and surprises implied by the structure and allows for what-ifs to improve performance.
System Dynamics in Business and Society