Climate change, technological developments, social and demographic change and the changing geopolitical dynamics between developed and developing nations mean that the future risk landscape has not been so uncertain for a long time, and therefore effective emerging risk oversight and management is a priority for insurers and critical to strategic planning and ensuring business resilience.
Covering the different steps of the risk management cycle (risk strategy and governance, identification, evaluation, mitigation, monitoring and reporting), this paper showcases examples of CRO Forum member firms approaches to the management of emerging risks. The paper explores issues such as dependency on expert judgement and risk of human bias, how to capitalise on the opportunities some emerging risks present as well as mitigate the downside, different evaluation techniques, tooling and automation (e.g. through application of artificial intelligence) and much more that the reader will find of interest.
The target audience is Emerging Risk Management Practitioner’s, whom we hope will find this paper a useful source of ideas to improve their management of emerging risks.