Page 15 - Turkinsurance Digital Magazine

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cent of respondents say they are interested impacts are measurable, such as business models, analytics or data science tools –
in raising new capital, financing or debt, interruption, material shortages, repu- 61 percent – to enable their companies
and 50 percent say they are open to invest- tational damage, legislative changes and to make better decisions. 61 per-cent of
ing in new technologies. procurement, each of which is among the the more powerful companies state that
top 10 risks by nature. Alt-hough it is at they are very confident in having the abil-
Which topics will the risks in the busi- the bottom of the list, another risk that ity to analyze the available data and in-
ness world focus on in 2022? is considered important is Environmental, formation to make sound decisions going
Social and Managerial risks. These risks forward. On the other hand, our research
As Aon, we evaluate the risks facing the ranked 39th in 2019 and 31st in 2021, revealed that companies weak-ened by the
global business world with the Aon Glob-al and are expected to be among the top 15 pandemic - 32 percent of respondents -
Risk Management Survey, which we pub- risks in the next three years. have difficulty integrating risk assessment
lish every two years. According to the Aon into decision-making and focusing on the
Global Risk Management Survey in 2019, What are your suggestions to compa- interconnectedness of changing risks.
while cyber risks ranked 6th, in our 2021 nies against these risks? Companies that were caught off guard
report, cyber risks ranked first among the by the pandemic and then weakened fell
existing and anticipated risks in the global We are witnessing the acceleration of dig- behind successful companies in the areas
risks list. These risks reached the highest ital transformation across all sectors in of financial protection against losses and
risk score since the first day of the survey. recent years. We see that institutions that the ability to keep employees safe and pro-
As a result of the 2021 Global Risk Man- want to maintain their competitive struc- ductive throughout the pandemic. In con-
agement Survey, the top 10 risks on the ture may neglect security. Most of the trast, powerful companies responded to
global business world's agenda were listed cyber threats faced by organizations to- the pandemic with a holistic perspective,
as follows: Cyber At-tacks/Data Breach, day are not new. Connected devices, ran- identifying risk integration as key to their
Business Interruption, Economic Slow- somware and insider risks will always be approach to defus-ing evolving risks.
down/Recovery, Com-modity Price Risk/ present. However, companies should take
Materials Shortage, Reputation/Brand into account that the cyber world, compli- How will leadership qualities change in
Damage, Regulato-ry/Legislative Chang- cated by the impact of COVID-19, may be the new era? What qualities can bring
es, Epidemic Risk/Health Crises, Supply exposed to exponentially in-creasing cyber success in leadership?
Chain or Distribution Interruptions, Fail- risks. In the rapidly advancing digital evo-
ure to Increase in Competition, Innovation lution, institutions should keep their cyber We are witnessing a rather volatile
and Meet Customer Needs. The risks in security on the agenda at least as much course triggered by the global COVID-19
the predictions of the participants regard- as their growth plans and be wary of cy- pan-demic, where the management of
ing the year 2024 are as follows: Cyber ber risks arising from the adoption of new risks such as cyber and reputation has
Attacks/Data Breach, Economic Slow- technologies or busi-ness models. As part become important. The biggest risks on
down/Slow Recovery, Commodity Price of an enterprise-wide approach in this di- the business world's agenda also reflect
Risk/Materials Shortage, Business Inter- rection, cyber risks and threats should be the im-pact of COVID-19 on institutions.
ruption, Rapid Change in Market Factors, identified as a priority. Institutions should The circumstances are testing the ability
Increase in Competition, Innovation and then reduce risks appropriately through of leaders to manage this volatile course
Failure to Meet Customer Needs, Legisla- best cybersecurity practices; they should and make better decisions, especially
tion/Legislation Changes, Pandemic Risk/ be prepared for events. Of course, it is also high-lighting the qualities of risk pre-
Health Crises, Cash Flow/Liquidity Risk. critical to evaluate which part of the risk paredness more than ever. Leaders are
In fact, it is also in the first place in the will be transferred off the balance sheet shifting their this direction focus from an
2024 year forecasts. Cyber risk was also through insurance, and then make sure ”event-based" risk assessment approach
listed among the top 10 risks across all that new risks are covered and review ex- to an "impact-based" risk assessment ap-
regions, industries and survey respond- isting policies. proach. For example, a job cut was pre-
ents. In addition, Aon Cyber Security viously a linear risk, but the COVID-19
Risks Report 2021 Internet of Things What will be the conditions for being a pandemic has shown how a job cut can
(IoT), the Internet of the body (Reduc- strong company in the new period? Do affect multiple sectors and companies
tion) and found that smart city initi-atives you observe a change in these factors both simultaneously and globally. Again,
continues to create new areas such as cy- compared to past years? accord-ing to our research, we see that
ber-risks. In addition to all this, the risks the awareness of leaders to be prepared
associated with climate change will also The requirement of being a strong compa- for risks has also increased. The pandemic
be on the agenda of companies much more ny in the new era is to value data, anal-ysis has reshaped the way leaders view risks
now. Although businesses did not rank and expertise. Senior executives who took and in-creased the importance of making
climate change among the highest risks part in our survey, “A New Ap-proach better decisions. I would say that this peri-
in our Global Risk Survey (ranked 29th), to Variability: The Importance of Mak- od has given leaders the insight they need
climate change appears to be linked to ing Better Decisions,” showed that their to understand the dynamics of long-term
other tangible risks for which immediate companies are placing more emphasis on risks and the need to be better prepared.