Global professional services firm Aon has unveiled its 2023 Global Risk Management Survey results, highlighting cyber attack/data breach as the top concern for organisations in the Asia Pacific region.
Aon CEO, Greg Case, emphasised the heightened awareness of interconnected risks and people challenges, citing the dynamic landscape of trade, technology, weather, and workforce issues.
Advanced analytics and integrated Risk Capital and Human Capital capabilities were highlighted as crucial tools to manage and match capital to recognised risks.
The survey revealed a significant shift in the risk landscape for Asia Pacific businesses, as cyber attack/data breach claimed the top spot, displacing its 2021 position as the second-ranked risk.
Economic slowdown/slow recovery and business interruption followed closely as the region’s second and third most prominent risks, reflecting the challenging economic backdrop faced by organisations amid tightening monetary policy.
Anne Corona, CEO of Asia Pacific for Aon, stressed the need for a mindset shift towards better risk preparedness, utilising data, analytics, and expert advice to navigate long-tail risks.
Despite economic challenges, Asia Pacific is anticipated to be the most active region in terms of GDP growth in 2023, with China and India projected to contribute significantly.
The top ten business risks in Asia Pacific, according to the survey, include cyber attack/data breach, economic slowdown/slow recovery, business interruption, failure to attract/retain top talent, rapidly changing market trends, supply chain/distribution failure, regulatory/legislative changes, increasing competition, failure to innovate/meet customer needs, and commodity price risk/scarcity of materials.
Notably, only two of the top five current risks in the region are insurable, with half of the overall top 10 considered uninsurable at present.
While climate change did not feature in the top 10, it directly impacted four of the listed risks, including business interruption, changing market trends, supply chain/distribution failure, and regulatory/legislative changes.
The global perspective mirrored the regional trend, with cyber attack/data breach, business interruption, and economic slowdown/slow recovery ranking as the top three global risks.
Aon’s Global Risk Management Survey, conducted biennially since 2007, serves as a crucial resource for decision-makers navigating the complexities of an increasingly volatile business environment.
