Aon Global Risk Management Survey 2021
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What is the Global Risk Management Survey?
Conducted every two years since 2007, Aon’s 2021 Global Risk Management Survey provides data and insights to enable better decision making around risk in an increasingly volatile and complex business environment. The 2021 survey gathered input from 2,344 respondents, covering 60 countries/territories and 16 industries, at public and private companies of all sizes. The findings from the survey, which was conducted in 11 languages, underscore that companies are grappling with new risks, and highlights the differences of opinion on how to best prioritize and respond to them.
The report features the top 10 risks by industry and region, as well as risk readiness, associated losses and mitigation actions for each of the Top 10 risks. In addition, the report includes the predicted top 10 risks in the next three years and Aon’s analysis of underrated risks.
Why is it important now?
TThe COVID-19 pandemic fundamentally changed the way the world works, having a ripple effect across many facets of risk and re-ordering priorities in the C-suite. In addition, it heightened awareness of risk interconnectivity and the necessity of managing long-tail risks. The shifting risk landscape and related client concerns that are highlighted in the Global Risk Management Survey parallel the current insurance market trends: As risks related to cyber, communicable disease, contingent (non-damage) business interruption, climate change, and other factors become more volatile, insurer underwriting practices are becoming more rigorous, appetite is shifting, coverage terms are being clarified, and attachment points are increasing. To develop a plan for managing volatility requires an understanding of both what is happening in the insurance market today, and the changing risk factors driving these trends.
Top 10 Global Risks
- Cyber Attacks / Data Breach
- Business Interruption
- Economic Slowdown / Slow Recovery
- Commodity Price Risk / Scarcity of Materials
- Damage to Reputation / Brand
- Regulatory /Legislative Change
- Pandemic Risk / Health Crises
- Supply Chain or Distribution Failure
- Increasing Competition
- Failure to Innovate/ Meet Customer Needs
How can I leverage it for my organization?
The world is a more volatile place and the importance of better decision making has never been greater. Long-tail risks are not single events. They’re innately interconnected, as we’ve seen with the COVID-19 pandemic fundamentally changing the way the world works, revealing new risks and re-ordering priorities in the C-suite. A preoccupation with managing these immediate risks may be compromising firms’ ability to invest in the risks of tomorrow.
The online report features insights and analysis from insurance and industry experts across Aon highlighting key risk issues and possible mitigation ideas and solutions. Industry sector reports can be downloaded in 11 languages thus enabling enterprise wide risk management and insurance conversations to compare your organization’s risk management approach to those of your peers. Risk managers who successfully manage their risk portfolio enterprise wide will be those that set themselves apart from their peers by actively enhancing their organizations' performance.