Study finds that companies are failing to implement necessary resources to tackle new levels of risks...
Multinational corporations are facing increasingly diverse, complex and exotic risks, and may not have all the resources in place to manage them effectively, according to new research from Aon.
More than half of the survey's respondents said they weren't prepared for the risk they rated as most worrisome – damage to reputation.
”Executives now see reputation as a major source of competitive advantage,” said Ruth Joplin, Aon global risk consulting managing director. “While intangible, reputation is one of the most important corporate assets and one of the hardest to protect,” she added.
Survey responses suggest that third party liability risk concerns have arisen as a result of the encroachment of U.S.-style litigiousness into other geographies. “The ‘compensation culture' is gaining a stronger global foothold,” Joplin said.
Other top ten risk concerns rated by survey respondents were, in order, regulatory changes, failure to attract or retain staff, financial risk, physical damage, mergers and acquisitions and disaster recovery plan failure.
The survey also indicated that corporate boards recognize the criticality of risk management and are engaged in the review of risk issues. Respondents reported identifying and understanding their risks is a top priority and many planned to take a more enterprise-wide approach to risk within the next two years.
