Looking ahead, leaders also expect environmental risk will become increasingly critical. (Credit: Diki /AdobeStock)
Around 80% of global risk leaders lack confidence in their organization's ability to navigate emerging risks over the next decade, according to a recent survey from WTW. On top of this, only half of respondents said they were confident in their organization's ability to handle existing risks.
Technology emerged as the top concern for respondents, with artificial intelligence, cyber threats and the future of technology named among the top risk concerns both currently and in the future. Geopolitical issues are also top-of-mind for risk leaders; including things like elections and “societal cohesion to the misalignment between government and business interests.”
Looking ahead, leaders also expect environmental risk will become increasingly critical. Nearly half (47%) of respondents identified climate change and climate transition risks as key drivers of change over the next decade, alongside concern about policy gaps, resource regulation and an increase in CAT events.
Despite recognizing these risks, only 40% of respondents in the wider colleague sample of the survey said they have been consulted in their organization’s risk evaluation. Around half (49%) were unable to specify their organization's top emerging risks.
This gap, WTW notes, underscores the need for more structured risk management processes and internal intelligence sharing.
“The ability to effectively manage risk is key to thriving in an uncertain world. With regulators globally deepening their own exploration into emerging risks, investors asking more and more questions, and organizations facing material financial consequences as risks evolve, there is a need for new approaches,” Adam Garrard, global chairman, risk and broking at WTW said a the release. “We need more than data-informed decision making to explore the emerging risks shaping risk and opportunity. We need to focus on optimizing risk outcomes. Smart specialization, smart service, smart use of data, smart research. It all comes together to help navigate the complex risk landscape.”
The full survey can be found here.
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