A majority of risk leaders in the Asia-Pacific (APAC) region are uncertain about their organisations’ preparedness for emerging risks over the next decade, according to findings from WTW’s Emerging and Interconnected Risks Survey.
The report indicated that only 29% of decision-makers and their teams believe their organisations are well-positioned to address risks that may arise over the next 10 years.
Furthermore, under half (48%) of respondents feel confident in their organisation’s current risk management strategies.
The survey, developed by the WTW Research Network, introduced a taxonomy of 48 risks spanning eight categories. It assessed how respondents perceive risks over four timeframes:
Technological developments and advancements are seen as the primary forces shaping risk in the APAC region.
Respondents identified cyber threats and technological disruptions as the leading risks for both the near term and the next decade. Artificial intelligence (AI) was cited as a major driver of long-term change, reflecting its transformative potential across industries.
Geopolitical tensions are also reshaping global risk landscapes. Shifts in supply chains, accelerated by political and economic uncertainties, placed supply chain disruptions (23%) among the top concerns for the next two years, ranking below cyber risks (34%).
Workforce challenges, regulatory changes (20%), and economic pressures were also frequently mentioned.
Luke Ware, WTW’s head of corporate risk and broking for Asia, emphasised the importance of integrated approaches to risk management.
“What is certain is that none of the risks operate in isolation and organisations need to move away from a siloed approach to risk and rethink the narrative around risk. Emerging risks are complex and carry unseen costs if they go uncontemplated. Hence, it is important to build an emerging risk process and link it to the business model, including through the lens of opportunity,” he said.
Climate-related risks are expected to escalate over the next 10 years, with 53% of APAC respondents citing climate change and climate transition challenges as major concerns.
Participants noted potential impacts on sectors such as agriculture, travel, and investment, alongside risks associated with regulatory changes and extreme weather events.
Increased frequency of natural disasters is further adding to the uncertainty surrounding long-term planning.
The survey also identified gaps in organisational risk intelligence processes. Over a third (35%) of respondents indicated they had not been involved in discussions about emerging risks.
Additionally, 55% were unable to clearly identify their organisation’s most significant emerging risks, despite being able to articulate anticipated changes over the next two (93%) and 10 years (88%).
These findings suggest an opportunity to improve risk evaluation frameworks by fostering internal collaboration and integrating risk intelligence.
Scenario analysis was highlighted as a valuable tool for organisations to craft coherent strategies and prepare for uncertain futures.
Simon Weaver, WTW’s head of APAC and corporate risk and broking, noted that managing risk effectively is critical to navigating an increasingly uncertain world.
“With regulators deepening their own exploration into emerging risks, investors asking more questions, and organisations facing material financial consequences as risks evolve, there is a need for new approaches,” he said.
He added that optimising outcomes requires combining data-driven insights with strategic foresight.
“Smart specialisation, smart service, smart use of data, and smart research. It all comes together to help navigate the complex risk landscape,” Weaver said.
WTW’s global survey involved responses from more than 330 participants across 55 countries, including over 120 from the APAC region.
The APAC respondents represented organisations spanning 13 industries, including transportation, financial services, and natural resources, employing approximately 581,000 people and generating $972 billion in revenue.
The report provided actionable recommendations for businesses, emphasising the importance of structured approaches to emerging risk evaluation, improved internal coordination, and the use of scenario planning to address interconnected risks.
