Risk is something that most organisations try and prepare for from every angle, but a recent report warns that many companies are spending their time watching traditional risks, becoming more open to new threats.
The world is increasingly volatile, with more and more risks emerging by the day.
Why are risks increasing?
Taking risks is an important part of any business, the bigger risks often lead to the biggest kind of reward and we don’t predict that will change. But the modern business environment is more prone to risks than ever before.
Business travel, flexible working, an influx of connected devices and extended supply chains all make organisational structures much more porous than 25 years ago. With so many areas of business being risk-heavy, it’s important to take risk assessments seriously.
Protection against emerging risks is a legal requirement
Last year, the UK Corporate Governance Code introduced a new legislation, one that requires organisations to carry out an assessment on emerging risks in their annual report.
Despite this new introduction, many organisations are failing to predict risks that could affect their future environment.
The problem with emerging risks
Emerging risks are not only harder to define and quantify, but they require more work to assess and map too. For example, three years ago an issue like Brexit was an emerging risk, whereas it is now very much a current risk, one that impacts many organisations.
Another problem is that some risks are completely unpredictable. No-one could have predicted that a single drone could have caused so much trouble at an airport for so many days and threats like this simply could not have been predicted five years in advance.
What can you do to protect your company?
Insurance plays an important role in protecting your company, clients and employees. While each company is different, there is a wide range of covers and bespoke services that can mitigate some risk-impact.
For example, you could consider medical cover to minimise employee absence, general liability to protect relationships, as well as directors and officer’s insurance to protect leaders and businesses from costly legal battles.
If you have any queries about emerging risks in your industry or about your level of cover, get in touch today, our experts will be happy to conduct a complimentary Risk Review of your business – 01476 434050.