A survey by WTW has revealed significant challenges for organisations in preparing for emerging risks.
According to the “Emerging and Interconnected Risks Survey,” only 20% of key decision-makers and their teams believe their organisations are adequately prepared to respond to risks expected to arise in the next 10 years. Half of the respondents expressed confidence in their organisation’s ability to address today’s risk environment.
The report draws on insights from 333 respondents across 55 countries, representing industries such as transportation, financial institutions, and natural resources. Together, these organisations employ approximately 1.3 million people and generate $2.3 trillion in revenue.
For the survey, WTW consulted senior leaders, teams supporting risk management, and wider employees to explore their perceptions of risks across timeframes and categories.
The survey identified technology-related risks, including artificial intelligence, cyber threats, and the future of technology, as the most pressing concerns for today and the near future. These risks were also expected to be the largest drivers of change over the next decade.
Geopolitical issues, ranging from elections and societal cohesion to government-business misalignment, were another significant area of concern for respondents.
Adam Garrard (pictured above), global chairman of risk and broking at WTW, commented on the findings, stating that managing risk effectively is crucial in an unpredictable world.
“We need more than data-informed decision making to explore the emerging risks shaping risk and opportunity. We need to focus on optimising risk outcomes. Smart specialisation, smart service, smart use of data, smart research. It all comes together to help navigate the complex risk landscape,” he said.
Climate change and related risks are expected to play a pivotal role in shaping organisational strategies over the next decade. Nearly half of respondents (47%) highlighted climate transition and climate-related risks as key sources of change, alongside concerns about environmental degradation, regulatory changes, and physical risk events.
Respondents also anticipate an increase in catastrophic events, raising uncertainty about future resilience.
Lucy Stanbrough, head of emerging risks at the WTW Research Network, emphasised the need for a more nuanced understanding of interconnected risks.
She noted that every risk in the survey was identified as a top concern by at least one respondent, underscoring the diversity of challenges faced by organisations.
The survey revealed internal communication and process gaps within organisations. Forty percent of wider employees reported never being consulted on emerging risks, while nearly half of respondents (49%) were unable to specify which risks were of greatest concern to their organisations.
Despite this, most respondents were able to identify the top five changes expected in the next two (95%) and 10 years (90%).
Stanbrough highlighted the importance of implementing emerging risk frameworks as a top organisational priority in the next two years. She stressed the value of integrating these frameworks into business models to enhance resilience and performance.
Garrard and Stanbrough both underscored the importance of smarter approaches to risk management. Garrard advocated for combining data-driven insights with strategic decision-making to optimise risk outcomes, while Stanbrough pointed to the need for organisations to identify opportunities amidst constant change.
The findings indicate a growing recognition of the need for coordinated and structured strategies to address the evolving risk landscape. As organisations face increasing complexity in managing interconnected risks, the adoption of robust frameworks and innovative methodologies will be critical to future resilience.
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