- Aon's 2019Global Risk Management Survey identifies key challenges organisations face inassessing and responding to traditional and emerging risks
- Businessinterruption and cyber attacks among the Top 10 risks in Asia
SINGAPORE - Media OutReach - 29 May2019 - Economicand global trade concerns are challenging organisations' ability to invest adequatelyin preparing for and protecting the continuity of their operations, accordingto Aon's 2019 Global Risk Management Survey.
Aon plc, the leading global professional services firm providinga broad range of risk, retirement and health solutions, surveys thousands of riskmanagers across 60 countries and 33 industries every two years to identify keyrisks and challenges faced by their organisations.
Risk managers globallyare reporting their lowest level of risk readiness in 12 years, as manytop risks -- includingincreasing competition and economic slowdown -- remain uninsurable. InAsia, respondents ranked increasing competition as the No. 1 risk.
Business interruption was cited as the No. 2 concern in anincreasingly complex security environment, as ISIS ideology is exported to Asiainspiring radical actors. The recent attacks in Sri Lanka underscore the pointthat tourism-dependent economies in the region can easily become victims ofbusiness interruption and suffer risks related to loss of attraction.
Cyber attacks remain the No. 7 risk as the frequency ofcyber breaches increases. The personal data of over 4,000 individuals, who hadregistered their interest in donating blood, was compromised recently after theSingapore Red Cross website was hacked. Hackers accessed at least 460,000accounts registered on the shopping websites of Fast Retailing, Asia's largestretailer and owner of Uniqlo and GU brands.
The trends toward interconnectivity and interdependencyhave made supply chains more vulnerable to cyber attacks. In Asia, whichrepresents more than one-third of the global contract logistics market, naturaland man-made catastrophes have the potential to disrupt local economies.
"Businesses can nolonger rely on traditional risk mitigation strategies amid increasinguncertainty, trade policy disputes, and speed of technology change. Instead oftraditional risk transfer, risk managers must embrace robust risk management strategiesto protect their organisations from potential volatility while maximisinggrowth opportunities," said Sandeep Malik, CEO, Asia Pacific, Aon.
The top 10 risks in Asia are:
1. Increasing Competition
2. Business Interruption
3. Accelerated Rates of Change in Market Factors
4. Economic Slowdown / Slow Recovery
5. Damage to Reputation / Brand
6. Cash Flow / Liquidity Risk
7. Cyber Attacks / Data Breach
8. Commodity Price Risk
9. Political Risk / Uncertainty
10. Regulatory / Legislative Changes
Participantprofiles in Aon's 2019 Global Risk Management Survey encompassed small (below$1B USD), medium ($1B - $15B USD), and large (above $15B) organisations, includingrespondents from privately-owned companies, public organisations, government,and not-for-profit entities. The full report can be accessed at www.aon.com/2019GlobalRisk.