The impact of the COVID-19 pandemic has demonstrated with clarity and certainty that the world is more volatile and interconnected than ever before. As this year’s Global Risk Management Survey shows, long-tail risks have become a focal point of the risk landscape, with the ripple effects of increased cyber events, severe weather and supply chain disruptions having a significant impact on the global economy.
What our research also continues to show is that a failure – or unwillingness – to prepare can be catastrophic to an organization’s reputation and survival. COVID-19 is a stark reminder that it is not enough to focus on a specific event or exposure, but on the impact events can carry in a globally connected marketplace.
At Aon, we are in the business of better decisions. That is why as a firm we are dedicated to developing and delivering innovative solutions that address both known risks and those that are emerging. It is not enough to look in the rearview mirror for predictive models and solutions. The increased volatility in the world demands that we use data, state-of-art analytics and our subject matter expertise to build new predictive models and solutions that help clients prepare for what’s to come, as well as manage what they currently face.
Given the threats posed by long-tail risks, we are focusing on four major identified areas of client need to address these challenges – challenges that are disrupting supply chains, leaving intellectual property assets undervalued and vulnerable, and increasing the risks of a major cyber event:
- Understanding new forms of volatility: Building an understanding of holistic risk management solutions to solve for emerging threats and long tail risks.
- Considering access to new forms of capital: Understanding how to create alternative sources of capital that support risk taking and preserve existing capital to address recent hard market cycles and lack of capacity for emerging risks.
- Building a resilient workforce: Considering the role of all employees in building solutions for, and addressing challenges stemming from various threats; including how the future of work will be impacted and continue to evolve.
- Creating solutions for traditionally underserved or newly emerging market sectors – like gig economy workers - to map to how our economy and market needs are constantly evolving.
The bottom line for us all, is that risk managers who successfully manage their risk portfolio enterprise-wide will be those that set themselves apart from their peers by actively enhancing their organization's performance. The following insights and analysis – from an array of Aon experts – endeavours to help readers make better decisions for the future and drive improved performance.
As mentioned above, Aon is in the business of better decisions. We hope you will find these insights useful in your decision-making efforts and encourage you to reach out to your Aon representative for more information or if you would like to discuss any of the subjects raised within the report.
– Greg Case, CEO, Aon