Organizations failing to anticipate and model key emerging risks: Marsh report
New York | Mittwoch, 19 Mai 2021
Effective risk resilience increasingly correlated to a firm’s viability, growth potential, and competitiveness
Despite a broad consensus across large and midsize organizations about the rising threat posed by a range of emerging risks, the vast majority continue to overlook and underemphasize the potential impact of these risks on their businesses, according to the inaugural Marsh Risk Resilience Report published today by Marsh, the world’s leading insurance broker and risk advisor.
Based on a global survey of nearly 1,000 organizations, the report highlights large disparities in the perception of and response to threats posed by pandemic, cyberattack, emerging technologies, climate change/environmental, social, and governance (ESG)-related issues, regulatory changes, and geopolitical risks.
While 75% of respondents to the survey believe that their risk management and insurance buying processes are aligned to their long-term growth strategies, only 25% have a comprehensive or formal process in place to evaluate and model the impact of these emerging risks on their business. This comes despite respondents overwhelmingly identifying these six key emerging risks as increasingly critical, long-term threats to their organizations’ success.
The findings suggest a significant perception gap with firms’ risk management functions prioritizing short-term threats over those that are high severity but lower frequency. This potentially leaves them vulnerable to immediate and long-term disruptions to their operations, assets, and revenue streams, the report concludes.
As new challenges continue to emerge, and the risk landscape grows increasingly complex, the report identifies the competitive advantage that risk resilient firms can gain. A risk resilient organization is able to anticipate risk, minimize losses, and quickly resume business as usual following an event, gaining a competitive advantage over less-prepared peers through growth opportunities seized during times of operational and/or financial stress, the report notes.
“The COVID-19 crisis, the temporary closure of the Suez Canal, major cyber-attacks, and other recent events, have all exposed the fragility of global systems and serious shortcomings in organizations’ preparedness to manage major crises,” said John Doyle, President and CEO, Marsh. “As our report outlines, effective strategies to build more resilient businesses will not only facilitate faster recovery but also increasingly become a competitive advantage.
“Our survey findings show that more work needs to be done when it comes to anticipating and modeling key emerging risks as they develop,” Mr. Doyle added. “Resiliency is a journey that organizations need to prioritize.”
According to the Marsh Risk Resilience Diagnostic, the journey towards resilience involves four common steps and behaviors: anticipating important risk issues; connecting risk management to business strategy; avoiding gaps in the perception of preparedness; and measuring relevant data. Together, these steps can transform risk management and support organizations in becoming more resilient, Marsh notes in the report.
More information about the Marsh Risk Resilience Diagnostic and Report can be found at marsh.com.
Notes to Editors
Marsh’s Risk Resilience Report is based on a survey of around 1,000 Marsh clients conducted in early 2021 across nine regions. Respondents represented more than 36 industries, including manufacturing, energy, real estate, retail, construction, health care, banking and financial services, and professional services The survey's objective was to measure respondents' resilience in six emerging risk areas — climate/ESG, cyber/technology, emerging technologies, geopolitical, pandemic, and regulatory.
Marsh ist der weltweit führende Industrieversicherungsmakler und Risikoberater. Unsere rund 35.000 Mitarbeiter helfen mittelständischen Unternehmen und Konzernen aller Branchen in mehr als 130 Ländern mit innovativen Absicherungslösungen und Beratungsleistungen ihre Risiken erfolgreich zu managen. Für die Marsh GmbH sind in Deutschland über 700 Mitarbeiter an den Standorten Baden-Baden, Berlin, Detmold, Düsseldorf, Frankfurt, Hamburg, Leipzig, München, Saarbrücken, Stuttgart und Ulm tätig.
Marsh ist Teil der Marsh & McLennan Companies (NYSE: MMC), einem weltweit führenden Beratungsunternehmen in den Bereichen Risiko, Strategie und Personal. Marsh & McLennan Companies hat einen Jahresumsatz von fast 17 Mrd. US-Dollar und beschäftigt rund 76.000 Mitarbeiter. Die vier Tochterunternehmen von MMC – Marsh, Guy Carpenter, Mercer und Oliver Wyman – unterstützen Kunden dabei, sich sicher in einem stetig dynamischer und komplexer werdenden Umfeld zu bewegen. Folgen Sie Marsh auf Twitter @MarshGlobal oder auf LinkedIn, Facebook und YouTube oder abonnieren Sie unseren Nachrichtenservice BRINK.