At Whitbread we continually strive to keep you aware of global risk trends that can impact your business, both locally and abroad.
One of our key insurance partners Swiss Re recently published a report covering the “Top 21 Global Risk Trends”. The report is certainly an enlightening one, and I encourage you to take a closer look, considering how these 21 current and emerging risks could impact you.
Swiss Re’s report looks closely at the top 21 economic, technological, environmental and socio-political trends that are threatening businesses, their potential impact and the cascading effect they may have right across the risk landscape into the future.
“In a future where change is the only constant, foresight information is crucial to prepare for tomorrow’s challenges. This report seeks to provide an early indication of what might lurk beyond the horizon. The earlier we start adapting to these changes, the better prepared we will be”
– Group Chief Risk Officer, Swiss Re.
Originally published in Insurance Business (May 21, 2015), below are some key insights that emerged from the Swiss Re report, along with my take on what it could mean for you.
Top 21 global trends According to Swiss Re:
According to Swiss Re, four emerging risks that could cause the largest impact are:
1. Managing the “Internet of Things”:
By 2025, a family of four could have more than 100 connected devices and individuals may be in daily contact with 3,000 to 5,000 connected things in the environment, creating huge amounts of data.
What it could mean for you:
Hacking and malfunctions could have a significant impact on business continuity and profitability, not to mention the welfare of your own staff should they be subject to an extortion.
2. “Super” Natural Catastrophes:
Rising natural disasters, such as volcanic eruptions, extreme flash flooding and heavy snowfall, have led to significant property damage and business interruption. Swiss Re believes increasingly common super natural catastrophes could have significant repercussions throughout the economic system, interrupting global travel and major supply chains.
What it could mean for you:
Given that over 85% of Australians live within 50kms of the coastline, Natural Catastrophes are a very real, and increasingly serious risk.
3. A Growing Appetite for De-globalisation:
Political conflicts in Eastern Europe, the Middle East and East Asia have spurred sanctions and implementation of officious policy tools that halt the flow of capital, goods and people across borders.
What it could mean for you:
These and other related scenarios, could readily create negative financial and investment impacts to all Australian based businesses, both now and into the future.
4. Unconventional Monetary Measures by Central Banks:
“Extremely accommodative” monetary policies have intensified, resulting in competitive devaluation. Debt burdens are unlikely to be reduced, which could cause a continuation of low interest rates and lower levels of business growth.
What it could mean for you:
If ongoing, this practice could have a significant flow on effects for business, increasing competition and lowering investment into economic markets.
Table: Overview of the 21 new emerging risks and their potential impact over time
Potential Impact |
0-3 years |
>3 years |
High |
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Medium |
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Low |
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Risk Management Solutions
The team at Whitbread are always on-hand to assist with any further queries you may have surrounding risks that threaten your business now, or preparing yourself for risks that present themselves in the future.
Below I have included brochures outlining our approach to Risk Management, explaining in detail how we can assist you in the risk evaluation and risk solution processes for your business.
“The sooner we anticipate risk, the more effective you can be at prevention and preparation”
– Swiss Re.
Click here to read the full Swiss Re SONAR report
View our Risk Management Brochures:
Risk Management Solutions
Crisis Management
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website – www.whitbread.com.au.
Sources: Insurance Business, Swiss Re
