An Aon news release said most organizations have increased their overall risk preparedness, but fewer than half said they are tracking and managing all components of their total cost of insurable risk.
Fewer than two thirds of respondents indicate they have formally reviewed the risk, or have a plan in place, for three of the top ten risk issues, which Aon said were:
- economic slowdown,
- damage to reputation and
- regulatory/legislative changes
Aon said that w hile reputation risk has fallen from its top position in the firm’s 2007 survey, the significance of this threat is not diminished.
Regulations and legislation are now perceived as the second greatest risk factors facing business, according to the Aon survey. While it remains unclear as to whether more stringent regulations are expected to expand to the majority of industry sectors, an increase in regulation within the financial sector is widely anticipated, Aon said.
“This survey helps our clients stay abreast of emerging issues and learn how peers and competitors are managing risks, overcoming challenges and capturing opportunities in order to achieve sustainable growth, continuity and profitability,” said Steve McGill, chairman and CEO of Aon Risk Services, in the news release.
The analysis is based on responses from 551 organizations in 40 countries.
2009 Aon Global Risk Management Survey
Change in ranking Reported readiness
Ranking Risk from 2007 by respondents
1 Economic slowdown +7 60%
2 Regulatory/legislative changes +4 65%
3 Business interruption -1 79%
4 Increasing competition New 71%
5 Commodity price risk New 77%
6 Damage to reputation -5 58%
7 Cash flow/liquidity risk New 75%
8 Distribution or supply chain failure -4 70%
9 Third party liability -6 81%
10 Failure to attract or retain top talent -3 68%
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