Page 38 - Insurance Times February 2022
P. 38
IDENTIFY THE TOP
EMERGING RISKS
AND POSSIBLE
WAYS TO MITIGATE
THOSE RISKS
Overview Introduction
Just in beginning of 2020, when top business leaders were
Background
asked to identify the biggest risks of the coming decade,
In a rapidly changing business environment characterized climate change was high on the list. But as we are standing
by advancing technology, shifting geopolitical tensions and today in coronavirus pandemic, concerns about sustainability
increasing regulatory scrutiny, it is more important than and the green transition have fallen down to bottom of the
ever for organizations to look beyond near-term threats agenda. Now business leaders were more concerned about
to prepare for the risks they could face in the future. specific threats like a prolonged global recession, which they
Broadly defined, these emerging risks are new or were not speaking about back in January.
developing threats that have an unknown significance and
impact and are therefore not well understood. Emerging Various Risks
risks can also be known risks that have transformed due
to changes in the business environment. The key is that, In order to address these risks, the insurance industry itself
even if the risk is known to some degree, the likelihood will need to innovate and implement those technologies
which have help them at least mitigate if not eliminate
and impact of the risk is not. These "unknowns" defy
traditional risk management techniques and, as a result, future uncertainties.
organizations often opt to allocate fewer resources to
them. But by taking steps to identify and evaluate 1. Insurance Fraud
emerging risks, organizations can be better equipped to The Risk:
make important, risk-aware decisions to ensure the best The insurance services industry is at risk from heightened
long-term strategic outcomes. levels of fraud, including cyber fraud, as criminals attempt
to exploit the COVID-19 pandemic.
Author
Following recent announcements of emergency measures,
Deepti Raghav there are likely to be significant numbers of applications
Manager, Claims from both individuals and businesses to access support
38 The Insurance Times, February 2022