A recent revelation by WTW has shown that only a mere 29% of key decision-makers and their teams in the Asia Pacific (APAC) region feel their organisations are well-equipped to handle the risks looming over the next decade. Alarmingly, just 48% of respondents have confidence in their current methods of managing today’s risk environment. The “Emerging and Interconnected Risks Survey” by the WTW Research Network evaluated 48 risks across eight categories, considering their short, medium, and long-term impacts and interconnectivity.
Technology has emerged as the central theme in the region’s risk agenda. With artificial intelligence (AI) and technological progress set to drive major changes in the next 10 years, cyber risks and other technology-related hurdles remain top priorities for organisations both now and in the near future. Geopolitical uncertainties also present substantial risks, especially in global supply chains, as 23% of respondents pointed to supply chain issues as a critical obstacle. Regulatory changes, workforce planning, and economic outlook are among the other key risks, while climate change risks are anticipated to have a significant long-term impact, with 53% of APAC respondents highlighting it as a key driver of change due to concerns about physical risk events, regulatory effects, and economic disruptions.
Despite these risks, there is a concerning gap in internal processes. A staggering 35% of surveyed employees said they have never been consulted on emerging risks, and 55% couldn’t identify their organisation’s most worrisome risks. However, structured approaches like scenario planning are regarded as valuable for formulating coordinated strategies. Simon Weaver, head of APAC and Corporate Risk & Broking at WTW, stressed the need for evolving risk management practices, stating, “We need to focus on optimising risk outcomes. Smart specialisation, smart service, smart use of data and smart research. It all comes together to help navigate the complex risk landscape.” The survey encompassed over 330 participants from 55 countries, with 120 from APAC, representing organisations with a combined workforce of around 581,000 people and generating $972b in revenue, spanning 13 industries such as transportation, financial services, and natural resources.
Related topics
