The 2021 edition surveyed more than 2,300 respondents in 60 countries across 16 industries at both public and private companies. With more emphasis and reliance on technology, cyber risk topped the list as the number one current and predicted future risk globally, its highest rank since the inception of the survey. Cyber was also cited in the top 10 list of risks across each region, industry and respondent type. In
The top 10 risks also strongly reflect the current landscape, namely COVID-19 and its impact on organizations. Amidst a backdrop of challenging market conditions, this is testing the ability of firms to manage volatility and make better decisions. Organizations are shifting their focus from event-based to impact-based risk assessments: for example, business interruption was once seen as a linear risk, but the COVID-19 pandemic has demonstrated how it can affect multiple industries and companies simultaneously and globally.
"The world is a more volatile place, and the importance of better decision making has never been greater," said
Exacerbated by the COVID-19 pandemic, and highlighting the interconnectivity of risk, the top 10 Canadian risks according to the 2021
1. Cyber Attacks/Data Breach
2. Economic Slowdown/Slow Recovery
3. Regulatory/Legislative Changes
4. Commodity Price Risk/Scarcity of Materials
5. Damage to Reputation/Brand
6. Failure to Attract or Retain Top Talent
7. Business Interruption
8. Pandemic Risk/Health Crises
9.
10. Supply Chain/Distribution Failure and Failure to Innovate/Meet Customer Needs
"Historically, risk managers and insurers have learned and made decisions by analyzing data from loss events that have occurred. This approach must evolve, and priorities and approaches need to change, in order to proactively manage the uncertainties of potential emerging exposures such as complex supply chains; we can't rely solely on the past to inform future risks," said
The report highlights 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. The top 10 future risks in
1. Cyber Attacks/Data Breach
2. Economic Slowdown/Slow Recovery
3. Commodity Price Risk/Scarcity of Materials
4. Damage to Reputation/Brand
5. Aging Workforce & Related Health Issues
6. Failure to Attract or Retain Top Talent
7. Business Interruption
8. Capital Availability
9. Failure to Innovate/Meet Customer Needs
10. Corporate Social Responsibility (CSR)/Environmental, Social and Governance (ESG)
Conducted every two years since 2007, Aon's
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