As 2024 draws to a close, boardrooms across the globe are defining their strategies for the coming year. The ability to identify and effectively manage risk remains central to delivering sustainable growth for an organization. The new WTW Emerging and Interconnected risks survey shows that 80% of risk leaders believe their organization may not be able to respond adequately to risks emerging in the next 10 years; and one in two respondents lacks confidence in their organization’s approach to today’s risk environment. Insights from the emerging risks survey highlight growing protection gaps, a more complex and interconnected risk landscape, and a lack of consistent approaches to emerging risk management. The report, launched in a webinar with senior figures across WTW also provides clear action plans to support organizations in building their resilience.
Technology topped the emerging risks league table, with artificial intelligence, cyber risks and the future of technology taking three of the four top risk views. Our latest Risk and Resilience report, written in collaboration with partners from Wharton, Loughborough University and the Peterson Institute, explores the dual challenge of technology innovation & AI adoption with energy use and sustainability. ‘Green algorithms’ are emerging as a game-changer, with our report identifying actions that can enable organizations to innovate responsibly while reducing carbon emissions and energy use.
Finally, our latest newsletter provides insight across a range of natural hazards. It seems certain that 2024 will be the fifth consecutive year global insured losses from natural catastrophes exceed $100 billion – a new normal we highlighted in our 2023 Natural Catastrophe review. The 2024 Atlantic hurricane season exhibited a fast-slow-fast progression, with record early Beryll followed by a mid-season pause ahead of intense late activity spearheaded by Hurricanes Helene and Milton. Our latest Natural Catastrophe webinar saw Dr James Done (NCAR), Dr Chris Callahan (Stanford University), and Christine Blackshaw (Princeton University) join us to discuss the 2024 hurricane season, hidden costs from tropical storms and long term shifts in hurricane behaviour. Our Emerging risk survey highlighted the use of scenarios and narrative analysis to help plan against these risks. We are pleased to include pieces that outline best-case approaches on doing that – for North Atlantic hurricanes, for wildfires in Hawai‘i, and for compound climate risks in Australia. We are delighted to announce details for our 2024 Natural Catastrophe review – which will be launched on 30th January. Registration is now open so plan to join us and WRN partners discussing significant 2024 events including Dr Erica Thompson from the London Mathematical Laboratory, who will talk about the challenges that come with evaluating pre-season hurricane forecasts and their real-world usefulness for decision-making; and Professor Manuel del Jesus from the University of Cantabria, who will examine the unprecedented rainfall and flooding that shook Spain.
As always, thank you for reading and please do get in touch with any questions.
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Whether you're a decision maker, at the operational forefront, or an interested citizen, understanding emerging risks & opportunities on the horizon is essential for shaping a resilient future.
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With the global need for an energy transition, focus has been on carbon intensive industries to accelerate action. However, AI and technology’s positive and negative impacts on climate need to be re-evaluated.
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As new research highlights the growing variability of North Atlantic hurricane seasons due to climate change, we explore the implications for insurers, whose scenarios have traditionally focused on changes in mean risk.
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Climate change will increase natural catastrophe risk in Australia, further complicating the business risk landscape. Storylines can help businesses understand and manage these complex, compound hazards.
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In this article from the WTW 2024 Power Market Review, we explore how electrification, demand shifts and energy security are reshaping the power sector and its future.
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This episode of Geopolcast dives into why Western businesses are prime targets for geopolitical risks, explores the diverse challenges companies encounter, and uncovers actionable strategies to mitigate these threats.
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Using the dynamic response of trees to estimate local wind speeds could provide valuable insights for the insurance industry to assess risks and understand the potential financial impact from wind hazards.
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To effectively manage reservoir risks and protect their reputations, operators should review risk management solutions.
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Exploring the contrasting drivers and outcomes of Hawai‘i’s 2018 and 2023 wildfires, we demonstrate how narrative analysis can enhance our understanding and management of wildfire risks.
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Climate disclosures are in danger of ticking boxes while the earth system passes critical thresholds. To achieve climate resilience, organizations need to better understand the risks and realities.
