Risk research from Accenture and Aon has revealed the top concerns of risk managers across the globe.
Preliminary results of Accenture’s Global Risk Management Research shows legal risks topped the chart of “external pressures” concerns, with 62% of respondents naming this as their biggest risk concern over the next two years.
Second on the list were business risks at 52%, while regulatory requirements were third at 49%. Credit risks, operational risks and strategic risks tied with 46% of respondents nominating these as top concerns.
The research included executives from 446 organisations across eight industries.
Aon’s Risk Solutions’ 2013 Global Risk Management Survey included 1,415 respondents from 70 countries and a range of industry sectors. It revealed the top concerns to be economic slowdown/slow recovery, followed by regulatory/legislative changes and third was increasing competition.
Bob Mann, chairman of specialty & chairman of national placement at Jardine Lloyd Thompson said the Aon study revealed a more accurate picture. “I think reputational risk is fundamental to companies existence, but what is driving companies, from our perspective, is risks they can control or mitigate.
“Aon have the right ones … Economics is driving a lot of companies decisions, so risk is part of this. Australia is part of the world economic scene – we are price takers, driven largely by world demand for product and resources,” he added.
Due to the world economy, companies are now focusing more on operational and business risks as opposed to reputational, he said.
Michael Bracken, partner at TressCox Lawyers, agreed the Aon outcome seemed closer to the mark. “I would have thought with the dissipation of regulatory prosecution following the GFC and slow economic growth, that legal risk [would drop] back behind economic slowdown/slow recovery.”
He added: “Clearly legislative and regulatory change continues to unsettle companies. The internal commercial focus of companies at the moment appears to be economic stability and consolidation.”
Top 10 external pressures:
1: Legal risks
2: Business risks
3: Regulatory requirements
4: Market risks
5: Credit risks
5: Operational risks
5: Strategic risks
8: Emerging risks
9: Political risks
10: Reputational risks