WTW has outlined four key actions for risk leaders in New Zealand to strengthen their approach to emerging and interconnected risks.
These recommendations follow the release of WTW’s Emerging and Interconnected Risks Survey, which highlighted uncertainty among organisations in the Asia-Pacific (APAC) region regarding their risk preparedness.
The survey found that only 29% of respondents felt confident that their organisations were well-prepared to manage emerging risks over the next decade. Additionally, only 48% expressed confidence in their existing risk management frameworks.
Conducted by the WTW Research Network, the survey examined 48 types of risks across eight categories. Respondents were asked to assess risks in four key timeframes:
As organisations in New Zealand plan for 2025 and beyond, WTW has advised them to align risk management with broader business strategy. The company outlined four steps that organisations can take to improve their approach.
WTW recommended that organisations assess whether their risk management strategies go beyond compliance to provide real business value. A critical first step is refining their definitions of emerging risks and aligning them with international frameworks such as ISO 31000 and ISO 31050.
The survey revealed that 86% of respondents could not recall their organisation’s definition of emerging risks. However, half of them could identify their organisation’s top five risks. This disconnect, WTW suggested, indicates a need for organisations to reassess their understanding of risk to ensure decision-makers can prioritise effectively.
According to WTW, a structured risk management framework should be integrated into an organisation’s business model to align with long-term goals. Companies should assess their risk maturity levels and benchmark against industry standards to identify areas for improvement.
The company emphasised the importance of involving a broad range of internal and external stakeholders in risk identification and mitigation processes.
It also highlighted that risk frameworks should not only focus on avoiding threats but also consider how organisations can use emerging risks as opportunities, such as exploring new markets or developing new products.
As risks continue to evolve, WTW advised organisations to build flexible risk management systems capable of adapting to new challenges. Establishing a dedicated risk monitoring team or steering group could help businesses track emerging risks and adjust their strategies accordingly.
It suggested that organisations incorporate scenario planning, external research, and intelligence tools into their frameworks to identify potential threats before they materialise. Regular updates to risk registers and collaboration across business units were also recommended as ways to enhance financial and strategic decision-making.
WTW identified internal communication gaps as a major barrier to effective risk management. The survey found that 40% of employees had never been consulted about their organisation’s emerging risks. WTW suggested that building a culture of risk awareness could help businesses better prepare for unforeseen challenges.
To address this issue, organisations were encouraged to establish clear communication channels to ensure that risks are identified and addressed in a timely manner. Engaging employees across departments, particularly those in frontline roles, could provide insights that may not be captured by senior leadership alone.
WTW also recommended integrating discussions on emerging risks into employee engagement initiatives to leverage diverse perspectives and improve overall risk intelligence.
In response to the evolving risk landscape, WTW introduced Radar Vision in March, an artificial intelligence-powered tool designed to assist insurers with underwriting, claims management, and pricing decisions.
WTW stated that Radar Vision provides real-time insights by analysing inflation trends, competitor activity, and shifting market conditions. The tool aims to help insurers detect emerging risks earlier and adjust strategies accordingly.
