A risky time for business

At the start of year, members of the Institute of Risk Management (IRM) were asked to identify key risk areas for businesses the year ahead. A broad range of healthcare, financial and political risks were highlighted as potential flashpoint. Many of these coincide with risks identified in The Global Risks Report 2016 released last week by the World Economic Forum.

Further areas of risk concern identified by IRM risk experts were the effects of continued austerity measures in the UK and the impact of disruptive business models.
When asked to assess the level of risk that will be at play across 2016, the outlook of those experts surveyed was relatively pessimistic. IRM experts were asked to choose a number between one to 10 (one being low risk, 10 being high risk) as their prediction of the scale of risk in the global economy in 2016. The majority chose seven when assessing overall risk for the year ahead.

“The impact of current macro trends and risks, such as cybersecurity, a new geopolitical landscape and an endemic low global growth environment will continue to put pressure on, and potentially change, entire business sectors,” says IRM Chairman Jose Morago. “Leaders who think critically about the future, anticipate disruption to their sectors, while building resilience and agility in their models, will be in a better position to tackle a challenging risk environment in 2016 and thrive.

“This year the IRM will place significant emphasis on supporting businesses and risk professionals on how to understand, manage and take advantage of game-changing risks such as cyber or bribery. Through the IRM’s qualifications, training and thought leadership, we will encourage leaders to think tactically and strategically about change and to question whether and how a threat can be turned into an opportunity. Risk professionals will be key strategic advisers in this journey.”