Business leaders across the globe identified economic risk as the greatest threat they face today, but also emphasized the need to innovate, mitigate technology failure and manage talent to compete in the future, according to the findings of Aon’s 2011 Global Risk Management Survey.

As the global economy continues to recover, the threat of sustained economic trouble weighs heavily on the minds of nearly 1,000 business professionals from 58 countries who participated in the survey.

This group identified the economic slowdown as the number one risk facing organizations across all geographies, with 67% of respondents reporting loss of income in the last 12 months associated with this risk.

Failure to attract/retain top talent ranked at the bottom of the top 10 risks list in 2009, a time when companies were experiencing hiring freezes and layoffs. In 2011, this risk is viewed as more acute, taking the No. 7 spot.

The majority of respondents (60%) reported they do not have a plan in place to handle this risk, and a trivial number (4%) said they are seeking outside support for recruitment and retention strategies.

For the first time in survey’s history, failure to innovate/meet customer needs made the top 10 list of global risks, coming in at number six. This development reflects growing concern about the risk of losing market share to more forward-looking competitors. Technology failure/system failure also earned its first top 10 spot, ranking ninth on the list.

Global Risk Management Survey top 10 risks:

  1. Economic slowdown
  2. Regulatory/legislative changes
  3. Increasing competition
  4. Damage to reputation/brand
  5. Business interruption
  6. Failure to innovate/meet customer needs
  7. Failure to attract or retain top talent
  8. Commodity price risk
  9. Technology failure/system failure
  10. Cash flow/liquidity risk

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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