Aon Risk Solutions has published its annual list of the key risks as identified by its clients across the globe with damage to brand and reputation topping the list via Cyber risk enters Aon’s top 10 global risks for the first time.
Aon’s global clients strongly felt that damage to brand and reputation ranked as a top concern across almost all regions and industries. This can be attributed to the growing challenges businesses are facing amongst the risks found in the top 10 list, such as cyber risk, but also including business interruption, property damage and failure to innovate.
For the first time cyber risk has entered the top 10 at number 9 , reinforcing its emergence as a key risk factor.
Damage to brand and reputation was cited as the top overall concern facing global organizations, further underscoring the increasing importance of cyber risk as it has been regularly linked to brand and reputation issues in the wake of data breaches.
The 1400 survey respondents to the Aon Global Risk Management Survey included CEOs, CFOs and Risk Managers providing comparative insight into different perceptions of risk.
Stephen Cross, Chief Innovation Officer, Aon Risk Solutions said “The insights provided by this survey help us understand how risks are changing as the global environment evolves. It’s little surprise to see cyber risk enter the top 10 at the same time we are seeing increasing concern about corporate reputation as the two issues are a great example of the interconnectivity of risk.
What is surprising was the lack of alignment between the board and the risk manager. Such diverse views illustrate how imperative it is that the board of directors have effective and regular communication with risk managers to effectively assess and mitigate the company’s risk exposure.”
The full report can be accessed at http://www.aon.com/2015GlobalRisk/default.jsp
The top 10 risks are:
1. Damage to reputation/brand
2. Economic slowdown/slow recovery
3. Regulatory/legislative changes
4. Increasing competition
5. Failure to attract or retain top talent
6. Failure to innovate/meet customer needs
7. Business interruption
8. Third party liability
9. Cyber risk (computer crime/hacking/ viruses/malicious codes)
10. Property damage
All the issues mentioned will be discussed at my next Reputation Risk Management Master Class. (Visit page for scheduled dates).