RECAP: 2018 FOX Fall Enterprise Forum

Global Risks and Your Risk Management Strategy

 

Presenter:
John Drzik, President, Global Risk and Digital, Marsh

Session Description: 

Each year, the Global Risks Report, published by the World Economic Forum at Davos, in partnership with Marsh & McLennan Companies and Zurich Insurance Group, is a critical guide to explore some of the major challenges and risks of the world. This session helped attendees understand how decision-makers across the industry can find opportunity amid today’s global challenges. From geopolitical turmoil, to environmental dangers, and cyber threats, we discussed how businesses may find benefit in applying some of the same contingency planning principles to a wider array of risk planning.

 

"While technological, environmental, societal, and geopolitical threats have emerged as top concerns for families, emerging technologies are being introduced that may be able to mitigate these risks."
- John Drzik
Key Takeaways: 
  1. In recent years, environmental, societal, and geopolitical threats have come to supplant economic risks as issues of greatest concern. Technological risks are also a top concern in 2018. 
  2. Family offices fall right in line with the global trends. Cyber risks and Natural Disaster risks have risen to the top of their concerns in the past few years. 30% indicated Cyber risk as the risk that has become more important over the last few years, and nearly a quarter (23%) named it as the risk they are least prepared to deal with. 
  3. There is a financial component to risk. Family offices play a significant investment management role, so it’s important to note that the financial impact of a loss (e.g. cybercrime, CAT, accidents, lawsuits, etc.) could have a significant impact on the family’s investments; much greater than the cost of properly managing risk. 
  4. Technological, geographical, and physical property risks and opportunities are blending together. As family offices and enterprises take advantage of new opportunities, your risk profiles will change. Consider risks that have historically not been relevant to the family’s industries and interests. 
  5. Whether the family office manager plays the role of risk manager, or if you have a dedicated person in that role, there are ways to be a better risk manager:
    • Align with strategic priorities
    • Devote more resources to emerging risks, and look beyond your current interests to consider non-traditional scenarios
    • Understand emerging technologies and how they can affect risk profiles
    • Focus on risk prevention in addition to response
    • Engage key stakeholders
       

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(FOX Members only)