Aon’s Global Risk Management Survey, conducted biennially since 2007, serves as a crucial resource for decision-makers navigating the complexities of an increasingly volatile business environment. The insights provided offer valuable perspectives for businesses seeking to address and mitigate emerging risks on a global scale.
Significant shift in the cyber risk landscape, says Aon
The survey indicates a significant shift in the risk landscape, with cyber threats now claiming the top spot, displacing their 2021 position as the second-ranked risk.
Aon said the importance of advanced analytics and integrated Risk Capital and Human Capital capabilities are crucial tools for effectively managing and aligning capital with recognised risks. This strategic approach is seen as essential in navigating the evolving risk landscape.
The survey also identifies economic slowdown/slow recovery and business interruption as the second and third most prominent risks in the Asia Pacific region, reflecting the challenging economic environment faced by companies amidst tightening monetary policies.
Despite economic challenges, the Asia Pacific region is expected to be the most active in terms of GDP growth in 2023, with significant contributions anticipated from economic powerhouses China and India.
The top ten business risks in the Asia Pacific region, according to the survey, include cyber attack/data breach, economic slowdown/slow recovery, business interruption, failure to attract/retain top talent, rapidly changing market trends, supply chain/distribution failure, regulatory/legislative changes, increasing competition, failure to innovate/meet customer needs, and commodity price risk/scarcity of materials.
Of note, only two of the top five current risks in the region are currently insurable, with half of the overall top 10 considered uninsurable at present.
While climate change does not feature in the top 10 risks, it directly impacts four of the listed risks, including business interruption, changing market trends, supply chain/distribution failure, and regulatory/legislative changes.
Globally, the survey reveals a similar trend, with cyber attack/data breach, business interruption, and economic slowdown/slow recovery ranking as the top three global risks.
Aon’s Global Risk Management Survey, conducted biennially since 2007, serves as a crucial resource for decision-makers navigating the complexities of an increasingly volatile business environment. The insights provided offer valuable perspectives for organisations seeking to address and mitigate emerging risks on a global scale.
Anne Corona, Aon’s CEO for Asia Pacific, highlighted the essential role of advanced analytics in preparing for long-tail risks that are becoming increasingly prevalent in the Asia Pacific region. These risks include maintaining workforce excellence, navigating volatile markets, ensuring supply chain integrity, adapting to new regulations, and staying competitive amid rising demands for innovation. The survey noted that these challenges are currently met with limited insurance coverage options.
“The world is more volatile, reflecting a series of profound transitions across trade, technology, weather and workforce issues that have awoken business leaders to the increasingly interconnected nature of risk and people challenges,” said Aon CEO, Greg Case.
He added: “Through the use of advanced analytics and more integrated Risk Capital and Human Capital capabilities, we’re helping clients quantify, manage and match capital to the risks they recognise today as we innovate on their behalf to serve their future needs.”
The top ten business risks for Asia Pacific
1. Cyber Attack/Data Breach
2. Economic Slowdown/Slow Recovery
3. Business Interruption
4. Failure to Attract/Retain Top Talent
5. Rapidly Changing Market Trends
6. Supply Chain/Distribution Failure
7. Regulatory/Legislative Changes
8. Increasing Competition
9. Failure to Innovate/Meet Customer Needs
10. Commodity Price Risk/Scarcity of Materials
The top ten global cyber risks
1. Cyber Attack/Data Breach
2. Business Interruption
3. Economic Slowdown/Slow Recovery
4. Failure to Attract or Retain Top Talent
5. Regulatory/Legislative Changes
6. Supply Chain/Distribution Failure
7. Commodity Price Risk/Scarcity of Materials
8. Damage to Reputation/Brand
9. Failure to Innovate/Meet Customer Needs
10. Increasing Competition
Author: Joanna England
