Page 26 - Risk Management Bulletin Jan- Mar 2022

RMAI BULLETIN JANUARY - MARCH 2022

potential impact of a cyber-attack and data breach and
then work cross-functionally to address those risks.

Businesses should consider adopting a comprehensive
approach to cyber threats to continually assess their
risk profiles, address vulnerabilities and proactively
fortify cyber defenses.

4. Cash Flow/Liquidity Risk
The Risk:
An event impairing an organization's cash flow or
liquidity can leave the business unable to meet short-
or intermediate-term obligations. Cash flow risk can be
attributed to economic uncertainty and financial 6. Millennials in the firing line
market
The Risk:
volatility.
Within this challenging economic and political
environment, the millennial generation is likely to be
Considerations:
the hit hard, with a prolonged economic downturn
Industry experts recommend that companies
affecting earnings at the beginning or middle of their
concerned about cash flow risk should seek to monitor
career.
and maximize their cash positions. Organizations
should also implement controlled cash management
This generation has already suffered the fallout from
systems; either decrease or pause spending, instead
the global financial crisis and austerity. Many have
focusing on cash inflow; diminish working capital; and
debts from university fees or have been unable to
attempt to improve their financial structures and
afford independent living. The pandemic and
funding options.
subsequent downturn could further exacerbate the
intergenerational divide.
5. Failure to Innovate/Meet
It is also possible that the frustration of millennials and
Consumer needs
a distrust of governments could foster social unrest or
The Risk:
politically motivated violence, leading to possible
Whether using a ride-hailing app or asking a digital
property damage or other insurance impacts, the
assistant to turn on the lights at home, consumers have
report warns.
quickly adopted tech-empowered solutions.
Innovation, therefore, is a necessity if businesses are
Considerations:
to remain relevant and competitive.
Government should come up with a sustainable plan
which should not only help young generation to live their
Considerations:
dreams but help to nurture the growth of a country. We
Data and analytics could improve organizations'
need to come up with affordable solutions for personal
understanding of consumer needs and provide
protection. If the insurance industry doesn't help here, it
perspective on how to shift their business model to
will lose out in the end.
keep up with consumers' demands. Innovation found
in smaller, incremental changes - such as creating
7. Business Interruption
operational efficiencies, finding new ways to serve
customers or even creating new solutions to address The Risk:
more traditional risks - is equally as important as the Man-made disruptions (such as acts of terrorism, civil
headline-making transformative technologies. unrest or cyber attacks) or natural disasters (such as

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