Top risks: many organizations report that they may be less prepared than they have ever been
- Published: Tuesday, 21 May 2019 07:23
Aon has published its Global Risk Management Survey 2019, a web-based biennial research report which this year features responses from 2,672 risk decision makers from 33 industry sectors.
Key findings from the report include:
- Every organization, industry and economy around the world is confronting more risks than ever before and many organizations report that they may be less prepared than they have ever been.
- Organizations need to be more prepared for the broad range of risks that threaten their ability to continue growing, protecting their brand and serving clients and stakeholders.
- Top-of-mind concerns include a slowing economy, damage to reputation and brand and accelerated rates of change in market factors reflecting apprehension about global trade conditions.
- In a weakening economic environment, companies are more sensitive to volatility, particularly from emerging risks such as cyber-attacks, business interruption from non-physical threats and shortages of skilled workers. These risks are less well understood as there is less experience and less data available to help manage them. As a result, risk readiness has declined to its lowest level in 12 years.
- Only 24 percent of respondents said they quantify their top 10 risks and only 20 percent use risk modeling.
- 10 percent said they have no formalized process in place to identify risks.
The Top 15 risks
Respondents were asked to identify and rank a list of key risks or challenges that their organizations are facing. These responses were collated into the following list of Top 15 risks, compared in the table with results from the 2017 version of this survey: