Page 20 - Risk Management Bulletin February 2024

RMAI BULLETIN FEBRUARY 2024

EMERGING

RISK

Shivani Gupta

Introduction sibilities extend beyond risk assessment to bridging the
gap between scientific advancements and the insur-
Emerging risks are unforeseen and unpredictable risks
ance industry. They accomplish this by translating com-
that have the potential to cause significant harm and
plex scientific concepts into insurance terminology.
loss. These risks are characterized by their novelty and
This critical function ensures that the rapid pace of
lack of reliable information regarding their hazards and
scientific progress aligns with the practical aspects of
implications. They have the potential to evolve and
underwriting and risk management on a day-to-day
become increasingly dangerous over time.
basis. By establishing this group and undertaking these
efforts, Hannover Re demonstrates its commitment to
Dealing with emerging risks requires specific strategies
staying at the forefront of emerging risks and effec-
and approaches, as traditional risk management meth-
tively integrating scientific knowledge into their risk
ods may not be applicable due to the absence of his-
assessment and management practices.
torical data or precedents. It is essential to proactively
address these risks, employing adaptive and forward-
Organizations like the Institute of Chartered Accoun-
thinking measures to mitigate their potential impacts.
tants of England and Wales (ICAEW), Deloitte, and in-
dividual accountancy firms are valuable resources that
Working Group and Forums for Emerging
may provide relevant information on emerging risks.
Risks: - Type of Emerging Risk: -
Hannover Re has taken a proactive step in establish-
ing the Working Group "Emerging Risks and Scientific According to experts, the top 10 emerging risks related
Affairs" to address emerging risks. This interdisciplinary to the COVID-19 pandemic can be described in more
group plays a pivotal role in identifying, evaluating, and detail as follows:
monitoring these risks. Moreover, the group's respon- 1. Strategic Assumption: This emerging risk high-

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