Airmic Survey: Agile risk professionals key to tackling perfect storm
Organisations need to invest in risk intelligence, research and analysis, constantly running ‘what if’ scenarios and rewarding curiosity as they navigate the ‘perfect storm’ of converging challenges, according to Airmic’s Annual Survey 2022.
Published at Conference on 6 June, the survey was produced in partnership with Control Risks, KPMG, Marsh, QBE, and Sedgwick and focused on three themes: cyber, ESG and people.
“Organisations need to be agile and adaptable in a perfect storm, but this is not licence for them to improvise their way out of a crisis,” said Hoe-Yeong Loke, Head of Research at Airmic.
“Processes, strategies, and experienced hands need to be in place – this is where people are central to an organisation’s resilience. Those that understand what is at stake amid the talent crunch and the Great Resignation will be best placed to ride out the storm.”
Airmic predicts that the ‘perfect storm’ will not ease as connected risks from outsourcing, global business models and global supply chains have resulted in a dramatic expansion of the geographic footprint and an increase in exposure to geopolitical risks for many organisations.
Although cyber remains at the top of the most concerning risks facing members, the survey suggests budgets are not responding quickly enough to finance risk mitigation efforts. In the 2021 survey, 18.7% of members said they “significantly more concerned” about cyber security than 12 months, with that number jumping to 46.2% in 2022.
The conflict in Ukraine has only raised the profile of cyber threats in recent months. In 2022, 55.3% of members said they “have spent more and intend to continue doing so” on cyber security. In 2021, 52.9% said the same.
On Environmental, Social, and Governance (ESG) issues, 72% of respondents said their organisations now have a dedicated ESG team with more than 50% saying reputational damage was the chief concern of climate change. More than 80% of respondents are concerned about Diversity Equity & Inclusion (DE&I), 63% about employee mental health, and 55% about employee health and safety.
Finally, there remains a strong desire for insurers to work closely with industry to develop relevant insurance products. Members also want to see a set of key performance indicators relating to climate risks from insurers, while doing more in particular to support carbon intensive industries in transition.
Download and read the full Airmic Annual Survey 2022 here.