Conclusion: Ready or not?

By any standards, the two years between 2009 and 2011 have been more than usually eventful.

Exceptionally frequent and costly natural disasters, waves of political change across North Africa and the Middle East, and an escalating sovereign debt crisis in Europe have created new economic, political, environmental and social uncertainties.

That the risk priorities of business leaders across the globe have changed is not surprising.

What is more surprising is the general level of confidence that respondents show in their ability to deal with these risks. We keep coming back to the fact that in 48 out of the Index’s risks most respondents believe their preparedness for a particular risk outweighed its sense of priority.

It is interesting that levels of perceived preparedness increase in those areas where insurance is most readily available, such as natural hazards, and shrink in relation to those where it is not.

But neither insurers nor their clients can afford to be complacent about the risks presented by low probability – high impact events.

 

Comments

Showing: 3 comments

Tue 06 Dec
2 Anon

This is incredibly insightful and very useful. Thanks for making such a complex subject user friendly and comprehensive. Loved the report.

Thu 08 Dec
Simon C

I agree with the previous commentator - insightful is exactly the right word. It is also something of an an eye-opener to some surprising risk attitudes. In particular, the light the report shines on the apparaent denial of the immediate and growing threats of natural disasters across the globe is a very valuable one and I hope sincerely that all sectors take note.

The findings of border-line complacency across the risk areas should be a prompt for Boards to move away from trying to not scare the shareholder horses in the short-term and towards establishing a robust longer-term strategic approach to risk.

The report itself though is rare one - it makes a traditionally dry subject clear, engaging and authorative. Thank you - I actually enjoyed reading it.

Thu 08 Dec
Business in the Community

I can see this report will be an incredibly valuable planning tool for CEOs and their boards. By articulating the global perspective it will help them contextualise the challenges they face. The report is clear, concise and readable.

It paints a vivid and realistic picture of the global risk landscape and has many wider applications. We will seek to use it to encourage better standards of governance around non material risks.

As an movement for responsible business with some 850 companies as members we welcome a report that encourages businesses to take action on the emerging risks that will require long term strategic planning like the talent and skills challenge.



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What kind of risks does your business face?

51% said Cyber

43% said Political

2% said Economic

1% said Reputational

1% said Other

1% said Environment

See also

Emerging Risk Reports
 Class of Business Reports
 Risk Reports