Survey Reveals Lack of Risk Management EffortsBy
Organizations are finding it difficult to adequately invest in preparing for and protecting the continuity of their operations due to economic and global trade concerns, according to Aon’s 2019 Global Risk Management Survey.
“Companies of all sizes are struggling to prioritize their risk management efforts amid so much change and uncertainty,” said Rory Moloney, CEO of Global Risk Consulting. “What was once a tried-and-true strategy for risk mitigation—using the past to predict the future—is now a challenge and coupled with a more competitive global economy, it is causing an all-time low level of risk readiness. As a result, risk management plans need to take a different approach than they have in the past.”
In the survey, respondents ranked economic slowdown as their top risk, followed by damage to reputation/brand. The third concern was accelerated rates of change in market factors due to an increase in protectionist international trade policies.
Risk managers are reporting their lowest level of risk readiness in 12 years, as many of the top risks, such as economic slowdown and increasing competition, are uninsurable.
“The changes in this year’s survey results indicate that the risk management function must evolve to reach the enterprise level,” Moloney said. “This, combined with the use of data and predictive analytics that can generate actionable insights, will help businesses protect their bottom lines while adapting to accelerated change and economic fluctuations.”
For the full report, go to aon.io/2IFWTK9.