Marsh & McLennan, in collaboration with the World Economic Forum, launched the 13th edition of the Global Risks Report. The report offers a rich perspective on the major threats to global prosperity. The global risks landscape is being shaped by the extraordinary pace of change, characterized by rapid technological advances (such as AI and automation) on the one hand, and seismic shifts in the political and geopolitical landscape on the other.
Because we know that this also affects your work and life, here are three key takeaways from the report:
- A relentless curiosity about emerging threats is vital. Companies may need to refresh risk identification and prioritization processes to energize leadership discussions. This includes better appreciating where market and non-market issues might intersect to destroy value in unexpected ways.
- Internal reverberations should not be underestimated. Business leaders are being drawn into high-stakes debates that are spinning out of political and technological change, especially where they intersect with social mores and corporate culture. This also has implications for the company brand and commercial relationships, as well as elevating insider threats.
- Firms may need to rethink the balance between prevention and response. For some potential shocks, prevention is unfeasible or too costly. Boosting strategic agility is one imperative. But better crisis preparedness and contingency planning will strengthen the ability of companies to move swiftly and decisively in the event of surprises.
Read more and access your own copy of the Global Risks Report 2018 >>