Mumbai, Maharashtra, India:
- 50 % of Indian companies cited Economic Slowdown/Slow Recovery as one among the high dangers that incurred losses
- 83.3 % of Indian companies anticipate whole price of insurance dangers to extend
- Companies least ready for fame dangers regardless of being assessed as one among the high 5 future dangers
Aon plc (NYSE: AON), a number one international skilled providers agency, has introduced the outcomes of its 2021 Global Risk Management Survey for India. The research gathers enter from hundreds of danger managers globally each two years to determine key dangers and challenges their organisations are going through. The previous two years have proved to be extremely unstable, with the international COVID-19 pandemic having a ripple impact throughout different forms of danger, such as heightened consciousness of fame and cyber, as long-tail dangers have develop into more and more essential to handle.
The 2021 version surveyed greater than 2,300 respondents in 60 international locations/territories throughout 16 industries at each private and non-private firms. With extra emphasis and reliance on know-how, cyber danger topped the listing as the primary present and predicted future danger globally, its highest rank since the inception of the survey. In India, Economic Slowdown and Accelerated Change in Rate of Market Factors topped the listing of dangers in 2021, whereas Business Interruption and Liquidity dangers have been cited as two of the projected high 5 dangers for 2024.
“Indian businesses are maturing to the need for periodic insurance assessment and proactively planning to mitigate insurable risks,” mentioned Jonathan Pipe, chief government officer, India at Aon. “We have seen a significant increase in the use of captives to transfer risks as well as greater support of external experts in assessing all possible business risks. Companies are committing additional budgets to manage and mitigate their potential risks, particularly accelerated rates of change in market factors, economic slowdown, and business interruption. With better planning and expert advice, most of the risks can be managed efficiently.”
The high 10 dangers in India strongly replicate the present panorama, specifically the COVID-19 pandemic and its affect on organisations amidst a backdrop of difficult market situations: international slowdown, provide chain disruptions, delayed infrastructure tasks, and inflation. This is testing corporations’ capability to handle volatility and make higher choices. Organisations are shifting their focus from event-based to impact-based danger assessments: for instance, the business interruption was as soon as seen as a linear danger, however COVID-19 and geopolitical dangers have demonstrated the way it can have an effect on a number of industries and firms concurrently and globally.
India Inc is most ready for Accelerated Rates of Change in Market Factors dangers with 50 % of companies surveyed having a danger administration plan, adopted by Increasing Competition with 28.6 %. Businesses, nonetheless, have been least ready for Reputation Risks with none of these surveyed having danger administration or continuity plan for it regardless of it being amongst the high 5 dangers.
The Top 10 Risks for India in 2022:
1. Economic Slowdown/Slow Recovery
2. Accelerated Rates of Change in Market Factors
3. Pandemic Risk/Health Crises
4. Business Interruption
5. Damage to Reputation/Brand
6. Cash Flow/Liquidity Risk
7. Cyber Attacks/Data Breach
8. Increasing Competition
9. Failure to Attract or Retain Top Talent
10. Commodity Price Risk/Scarcity of Materials
The Top Five Future Risks for India
1. Business Interruption
2. Cash Flow/Liquidity Risk
3. Economic Slowdown/Slow Recovery
4. Capital Availability
5. Artificial Intelligence (AI)
Conducted each two years since 2007, Aon’s Global Risk Management Survey offers information and insights to allow higher decision-making round danger in an more and more unstable and sophisticated business atmosphere. The full report is accessible right here. The report highlights the high 10 dangers by business and area, as nicely as danger readiness, related losses, and mitigation actions for every of the high 10 dangers. In addition, the report contains the predicted high 10 dangers in the subsequent three years and Aon’s evaluation of underrated dangers.
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