Our sense of living in "unprecedented times" facing extraordinary challenges is amplified by growing globalized interconnectedness, rising uncertainty and fast evolving news cycles. Regardless of whether the world faces greater or more probable threats, we are almost certainly facing a continuous supply of emerging risks that require a smarter way to manage risk.
Several annual global risk reports find their way into your inbox each year. Each has its own viewpoints and recommendations on risk, but it is rare to find one devoted to emerging and interconnected risks across risk, people and capital. Our research uncovers how unprepared organizations feel in the face of the complex risk landscape and their need for enterprise-wide approaches to act.
Whether you're a decision maker, at the operational forefront, or an interested citizen, understanding the emerging risks and opportunities on the horizon is essential for shaping a resilient and prosperous future. With regulators around the world deepening their own exploration into emerging risks, investors asking more and more questions, and organizations continually surprised by risks as they evolve, there is a need for new approaches. These stakeholders are starting to ask organizations to go beyond providing a list of key risks; they want to know the methodology, quantum of risk and how the board is taking action. Organizations need to be ready to answer.
The Survey Report provides critical insights into the evolving risk landscape, particularly in the Asian region. Key emerging risks identified include:
Cyber Risk and Artificial Intelligence (AI)
Natural Catastrophe and Climate Risk
Geopolitical Risk
These risks are deeply interconnected, and the survey emphasizes the need for a unified and holistic approach to risk management.
The report highlights the importance of moving away from a siloed approach and adopting a more integrated and enterprise-wide strategy. This includes fostering a risk-aware culture, using scenarios and storylines to better understand complex risks, and ensuring that risk management plans are aligned with the organization's risk appetite and tolerance.
Organizations that have implemented a consistent risk framework are outperforming their peers, regardless of size or complexity. However, 40% of employees feel they have never been asked to contribute to their organization’s risk process, indicating a need for greater involvement and collaboration across all levels of the organization.
To build resilience and navigate the complex risk landscape, organizations should:
We propose four practical actions for organizations to consider as they ask questions of their strategy to navigate the complex risk landscape:
We combine findings from the survey with further insights from global research and WTW leaders across industry, people, risk and capital to explore what your tomorrow will look like. Turn risks into opportunities by exploring the risk alerts and action plans across the survey report and get in touch with our specialists.
