"I have learned that nothing is certain except for the need to have strong risk management, a lot of cash, the willingness to invest even when the future is unclear, and great people." This quote comes from Jeffrey R. Immelt, the successor to Jack Welch and the CEO of General Electric that stepped down on August 1, 2017.
I noticed that he placed "strong risk management" right at the front of the priority list. For risk managers, everything represents a potential concern - from major incidents like floods or fires, to seemingly minor ones such as a change of personnel. But what issues are causing the most worry among risk managers this year? Research from insurance giant Aonsheds some light on the top 10 risks - which are:
1. Damage to reputation/brand
2. Economic slowdown/slow recovery
3. Regulatory/legislative changes
4. Increasing competition
5. Failure to attract or retain top talent
6. Failure to innovate/meet customer needs
7. Business interruption
8. Third party liability
9. Cyber risk (computer crime/hacking/ viruses/malicious codes)
10. Property damage
Many of these risks are embedded in or can be tied to global mobility programs. Managing risk when sending employees around the world is critical for avoiding potential and possibly very painful consequences. Effective risk management strategies allow your mobility program to identify strengths, weaknesses, opportunities and threats. By planning for unexpected events, you can be ready to respond if, and when any of these things arise.
So, where are the biggest areas of risk in your global mobility program? Are you more concerned about base erosion and profit shifting (BEPS), Permanent Establishment (PE), employment tax penalties or immigration infractions? Have you experienced any specific scary moments within your tenure?
LONDON - Aon Risk Solutions, the global risk management business of Aon plc (NYSE: AON), today unveiled the key risks as identified by its clients across the globe. For the first time ever cyber risk entered the top 10 at number 9, reinforcing its emergence as a key risk factor. Damage to brand and reputation was cited as the top overall concern facing global organisations, further underscoring the increasing importance of cyber risk as it has been regularly linked to brand and reputation issues in the wake of data breaches.