Organizations are underemphasizing emerging risks

John Doyle, Marsh president and CEO, said in a release: “As our report outlines, effective strategies to build more resilient businesses will not only facilitate faster recovery but also increasingly become a competitive advantage. Our survey findings show that more work needs to be done when it comes to anticipating and modeling key emerging risks as they develop.” (Credit: bleakstar/Shutterstock.com)

Despite widespread agreement across businesses on the dangers posed by emerging risks, the vast majority of organizations continue overlooking and underappreciating the impact these threats could have on a company, according to a report from Marsh.

Although three-quarters of respondents in a Marsh survey said they believed their risk management and insurance buying practices were aligned with long-term growth strategies, just 25% of businesses have a comprehensive or formal process in place to evaluate and model the impact of emerging risks on the organization. Risks being underemphasized stem from a range of sources including pandemics, cyberattacks, regulatory changes, geopolitical tensions, emerging technologies, and climate change and ESG matters.