Economic slowdown or slow recovery was ranked as the top risk facing businesses this year, according to Aon’s 2019 Global Risk Management Survey, followed by reputation or brand damage.
“Accelerated rates of change in market factors” was third, up from 38th in 2017, driven by “erratic trade policy and regulatory changes, large-scale geopolitical conflicts, frequent financial market turmoil, and rapid technology advancements.”
Other risks new to the top 15 were distribution or supply chain failure, capital availability/credit risk, and disruptive technologies.
Amid such volatility, respondents reported the lowest level of risk readiness in 12 years. Given the difficulty of transferring many of the top risks through insurance, enterprise risk management practices are more important than ever.
“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,” said Rory Moloney, CEO of Aon Global Risk Consulting.