Regulatory guidelines have been unclear. 9 Erratic changes in regulatory policy defy prediction. Inflexibly enforced conformity robs the business system of its ability to plan for the future and adjust to changing circumstances. As a consequence, the economy is beset by a continuous series of crises, of crash projects, drives attempting to cope with the most immediately observable or fashionable problem. 10 Induced Indolence Nowhere has the cost of this system of mismanagement been more dramatically portrayed than in the rates of return on investment.
Uncertainty is, of course, an inescapable circumstance of any dynamic environment.
In a business sense, uncertainty exists in varying degrees based upon the nature of the firm's source of income. High levels of uncertainty mean increased risk. Increased risk means that the enterprise must yield higher returns in order to justify taking that risk. Competent management will seek to reduce risk born of uncertainty. This is accomplished primarily through superior planning that attempts to anticipate future requirements and conditions and to compensate for them.