Volatility stems from the Latin word volatilis, “to fly away.” Fluctuations in the stock market or significant changes in the political landscape are considered in terms of volatility.

Uncertainty describes something unknown or unreliable. Certus in Latin means, “to sift, discern or decide”; its negative form means the inability to make a decision. For example, the outcome of the ongoing Eurozone crisis remains uncertain.

Complexity comes from the Latin word complexus, which means “totality.” You perceive events as complex when they have many aspects that interact to form the “totality of parts.” The 2011 earthquake in Japan caused the tsunami that destroyed the Fukushima nuclear plant and led Germany to turn away from nuclear power, which in turn caused uranium prices to dwindle. This exemplifies real-world complexity.

Ambiguity describes situations that have more than one meaning and – because of this multiplicity – have an unclear outcome. The term ambigere in Latin means, “to be undecided.” If you ask what the effect artificial intelligence and increased automation will have on job profiles and employment levels 10 years from today, the answer will be ambiguous.

The “VUCA” world