Global Executives Concerned About Preparedness for Emerging Risks
According to WTW’s Emerging and Interconnected Risks Survey Report, organisations worldwide are highly uncertain about their preparedness for emerging risks over the next decade
According to WTW’s Emerging and Interconnected Risks Survey Report, organisations worldwide are highly uncertain about their preparedness for emerging risks over the next decade.
The global survey involved responses from more than 330 executives across 55 countries, including over 120 from the Asia-Pacific region representing organisations spanning 13 industries, including transportation, financial services, and natural resources, employing approximately 581,000 people and generating $972 billion in revenue.
According to the report, just 29 per cent of decision-makers and their teams believe their organisations are well-positioned to address risks that may arise over the next 10 years, and only 48 per cent of respondents feel confident in their organisation’s current risk management strategies.
Some primary risk concerns identified in the report were:
Cyber threats and technological disruptions, in particular AI
Climate-related risks
Geopolitical tensions that could adversely impact supply chains
Workforce challenges, regulatory changes, and economic pressures were also frequently mentioned
The report also provides:
Actionable recommendations for businesses.
Emphasising the importance of structured approaches to emerging risk evaluation.
Improved internal coordination.
Scenario planning to address interconnected risks.
Luke Ware, WTW’s head of corporate risk and broking for Asia, emphasised the importance of integrated approaches to risk management.
“What is certain is that none of the risks operate in isolation, and organisations need to move away from a siloed approach to risk and rethink the narrative around risk,” Luke said. “Emerging risks are complex and carry unseen costs if they go uncontemplated. Hence, building an emerging risk process and linking it to the business model, including through the lens of opportunity.”
See here for more details about WTW and its Emerging and Interconnected Risks Survey Report.