Climate change and sustainability-related risks continue to impact the world we live in. Risk managers are well- positioned to become advocates for best ESG practices to ensure that organisations act with more urgency towards climate risks and increase investments towards sustainability.
Climate change is not just an environmental and societal issue. The changing climate impacts business operations as well as disrupts supply chains. The insurance industry continues to support businesses who want to achieve their SDG goals.
Digitalisation
To make employees part of security and not the weakest link, it’s back to the basics of mitigating people-driven cyber risks: 1) Employee Education and 2) Leadership Commitment.
Data is gold; however, that is only true if companies know how to articulate data and convert it into action. We were reminded of how important it is to have a single version of the truth and transparency to have a unified front against risks.
Mega Trends
We see interconnected risk trends such as Business Interruption, Pandemic Risk, Cyber Risk & Data Security, Aging and Overpopulation, Talent Crunch, Duty of Care and calling out for Public-Private Partnerships taking center vision for risk managers.
It is worth paying attention to Climate Change still not making it to the Top 20 of Aon’s Global Risk Management Survey when it is related to many of the top risks threatening businesses. It truly deserves a strong reminder for corporations to take the underrated risk that is Climate Change seriously, and for risk managers to continue pushing this discussion up the board agenda.
People Risks
At the core, resilience comes from our innate energy; as such, happy people make a happy organisation. The pandemic highlighted that health & wellbeing is not just an HR responsibility, but should also be part of the Board and risk managers’ agenda towards Workforce Resilience.
There is an increasing uptake on Captives for EB and beyond. Fortunately, an ecosystem exists to help corporations further customise their risk financing approach. By taking this journey, corporations can better understand the maturity of their risk profile and strategy.
Hard Market
‘Fix the roof while the sun is shining’ – Building a good relationship with their insurers, brokers and solution providers would serve organisations especially well in turbulent times.
There is still room for improvement when it comes to transparency and good communication between clients and providers.
