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Aon released its Global Risk Management Survey during the RIMS Conference in New Orleans.  Here, Rory Moloney, CEO of Aon Global Risk Consulting, reviewed the results of the survey, the “Risk Issues” facing companies today, and how they are affecting the role of risk manager.

Mr. Moloney says the Top 5 Global Risks included: Brand and Damage to Reputation, Economic, Recovery, Regulatory Change, International Competition and Talent.  Interestingly, Mr. Moloney points out that Cyber Risk and Third Party Liability and Property Damage have moved into the Top 10 biggest global risks.  Mr. Moloney says there is an increase in “connectivity” within the Top 10 Risks.

There were a few surprises in the list of top global, including pandemic, which did not increase in concern even with the recent Ebola crisis. Given the geopolitical issues around the world, it was also surprising that Political Risk and Terrorism did not rise up the list more significantly. In fact Political Risk slid back and out of the Top 10 Global Risks, according to Mr. Moloney.

Also surprising were the cluster of risks associate with “employee and benefit costs”, such as absenteeism, aging workforce, workforce shortage. Many would have thought these would rate higher as an operational and P&L risk.

The survey exposed a 13% increase in the establishment of a formal risk management function, a trend that Mr. Moloney suggests will continue with smaller companies as well, as a result of globalization and complexity of risk. He says that “we are entering the year of the matrix.” He says Aon believes a good risk manager these days “must be a superman or superwoman.” The role must interact more with human resources, finance, operations, legal and IT. It will be a challenge to the risk management function. However, Aon has not seen an increase in the formation of the Chief Risk Officer role.

For more World Risk and Insurance News from the 2015 RIMS Conference in New Orleans, visit the dedicated RIMS 2015 Channel in the WRIN.tv On Demand Library.

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