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Thinking through Uncertainty: CFOs Scrutinize Non-Financial Risk

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12 top enterprise risk management trends in 2023

Enterprise risk management has taken center stage as organizations grapple with the lingering effects of the COVID-19 pandemic, the threat of a recession and the rapid pace of change.

Executives recognize that stronger ERM programs are required to remain competitive in this new era. One aspect of the current risk landscape that companies must contend with is the connectivity of risks.

Businesses are increasingly more interconnected to partners, vendors and suppliers across global markets. As a result, the impact, for example, of a local natural disaster, the ongoing war in the Ukraine or high interest rates can cascade across an entire global supply chain.

Here are 12 security and risk management trends that are reshaping the risk landscape and influencing business continuity planning.

These are also closely related to: "Thinking through Uncertainty: CFOs Scrutinize Non-Financial Risk"

  • Infographic: Top 12 risk management skills

    Risk management is a must for anyone who aspires to be a leader or manager. There is risk to be addressed at all business levels, and if a leader is unable to manage risk, their upward mobility will disappear. 

    Being a capable risk manager requires awareness and knowledge to uncover potential risks and present them to people best suited to solve the problem. A risk manager doesn't necessarily have to make the fix -- they just need to bring it to the person who can. 

  • Royal Holloway: Lessons on catastrophe - differences and similarities between cyber and other forms of risk

    The field of cyber insurance is still in its infancy but has already shown significant growth, with plenty of evidence for further expansion. However, a lack of past information and some idiosyncrasies make pricing difficult, as well as potentially amplifying risk exposure.

    This article summarises high level findings from a practical model that could be used in lieu of actuarial data. The model may be refined in the future as historic datasets become available. This practical model shows that cyber insurance risks pose significantly elevated likelihood and impact when compared with other forms of risk which are more independent. Higher premiums will be a natural consequence to insulate from the associated downside.

    There are therefore strong incentives for insureds to improve event independence, for example through hardening. Insurers, on the other hand, can protect themselves from extreme events by rejecting certain risks with cover limits, as they do already, or they may choose to transfer the more extreme risks via commercial.

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