Introduction by Dr Richard Ward

In 2009 at the height of the credit crunch, Lloyd’s commissioned the Economist Intelligence Unit (EIU) to research and publish our first ever global survey into business leaders' attitudes to key risks.

Two years later, we asked the EIU to run an expanded version of the survey again.

This second Lloyd’s Risk Index shows that business leaders' perceptions of risks have evolved significantly. The world is now perceived as an inherently riskier place.

Three key strands emerge from the Risk Index findings:

From Credit Crunch to talent crunch

In 2011, businesses are less concerned about the availability of credit than they were two years ago, but more worried about the loss of customers and orders created by a new age of universal austerity.

More surprising is that risks posed by talent and skills shortages has shot up to become the second highest priority risk for businesses.

Risk awareness rises in the East

The significance of every category of risk for business leaders in the Asia-Pacific region have risen sharply compared to 2009, as has the perception that businesses are better prepared to deal with them.

Reality and perception at odds  

Business leaders consider themselves adequately prepared for the vast majority of risks listed. I welcome any increase in the implementation of formal risk systems, but businesses also need to recognise such systems cannot anticipate so-called ‘black swan’ events.

When it comes to risk management planning, businesses need to increasingly think the unthinkable to identify all their vulnerabilities and minimise them.

Richard Ward
Chief Executive Officer
Lloyd’s