Emerging Risks Survey - March 2014
Posted: 18 June 2014 | Source: Canadian Institute of Actuaries, Society of Actuaries, Casualty Actuarial Society
The world of risk management is at a crossroads. Five years have passed since Lehman Brothers and AIG forced the federal government to choose who was “too big to fail.”
This led to a flurry of risk management activity and regulations. Today enough time has passed that entities can look beyond risks that are fire alarms today to consider risks that could evolve and become material over longer time horizons. This year’s survey of emerging risks, the seventh, captures this shift. While financial volatility and other economic risks remain atop the list, other changes are being seen. Risk managers are looking at cyber risk, both as a current risk but especially as an evolving and emerging risk. The pace of regulatory change is increasing, causing great concern for those with budgets to manage while meeting external requirements. On the other end of the spectrum, Oil price shock has retreated from the top risk overall in the first survey to one far out of the top five list.