2017 Global Risk Management Survey- - Aon Australia · About Aon About Aon Aon plc (NYSE:AON) is a...
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About Aon About Aon Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. © Aon plc 2017. All rights reserved. The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For full insights from the survey, visit us at aon.com/2017GlobalRisk 2017 Global Risk Management Survey- Australian Highlights Today’s organisations in Australia are facing complex and interconnected risks. We live in an era of unprecedented volatility. Trends on three major dimensions – economics, demographics, and geopolitics – combined with the exponential pace of technology change, are converging to create a challenging new reality for organisations. These forces create opportunities that we cannot even imagine, but also present new frontiers to be explored. Top Ten Risks % of Respondents Indicating as Top 10 Risk % of Loss % with Plans in Place Regulatory/ legislative changes 66% 21% 58% Damage to brand/ reputation 62% 8% 67% Increasing competition 52% 43% 57% Failure to innovate/meet customer needs 52% 30% 67% Cyber crime/ hacking/ viruses/ malicious codes 45% 12% 92% Major project failure 40% 26% 87% Failure to attract or retain top talent 38% 14% 82% Economic slowdown/slow recovery 36% 43% 52% Operational business interruption 36% 5% 81% IT lack of technology infrastructure 26% 7% 67% Top Five Emerging Risks in 2020 100% 70% 30% 29% 61% No Yes Companies <$1 Billion Overall Companies >$1 Billion Presence of a Formal Risk Management Department Data Source: Aon’s 2017 Global Risk Management Survey Risk Departments Cultivate a Comprehensive Process to Identify and Assess Current and Emerging Risks Assessment of Major Risks Identification of Major Risks No formalised process 4% No formalised process 5% Industry analysis, external reports 37% Consult with external service provider/advisor 28% Risk information from other function-led processes (e.g.internal audit, disclosure, compliance, etc.) 65% Risk modeling/risk quantification analysis 32% Senior management judgment and experience 65% Senior management judgment and experience 60% 63% Board and/or management discussion of risk during annual planning, risk assessment or other processes Board and/or management discussion of risk during annual planning, risk assessment or other processes 49% 46% Structured enterprise-wide risk assessment process supported by a standard toolkit and methodology Structured enterprise-wide risk identification process judgment and experience 49% 33% 19% 13% 48% 68% 61% 45% 18% 36% 19% 22% 17% 5% Not purchased and no plans to purchase Insurance currently purchased Plan to purchase Overall Australia Europe North America Cyber Purchasing Patterns Cyber Risk - Completed Assessment 2% Yes, quantitative 28% Yes, both, quantitative & qualitative 32% No 14% Yes, qualitative 16% Yes, not sure what type of assessment 9% Not sure To keep pace with the pervasive and fast evolving cyber threats that go hand in hand with the dizzying speed of technological innovation, much more progress is needed in the area of cyber risk control and mitigation. What are the 3 most important drivers in your choice of insurers? Coverage terms and conditions Industry experience Financial stability 1 2 3 What top 3 methods do you utilise to evaluate the effectiveness of your risk management program? Identify/track involvement of risk management within your organisation Evaluate the extent to which risk concepts are integrated into business investments & strategic decisions Do not measure effectiveness 28% 44% 42% Disruptive technologies/ innovation Failure to innovate/ meet customer needs Damage to brand & reputation Increasing competition Regulatory/ legislative changes
Transcript of 2017 Global Risk Management Survey- - Aon Australia · About Aon About Aon Aon plc (NYSE:AON) is a...
About Aon About AonAon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
© Aon plc 2017. All rights reserved.The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
For full insights from the survey, visit us at aon.com/2017GlobalRisk
2017 Global Risk Management Survey- Australian Highlights
Today’s organisations in Australia are facing complex and interconnected risks.
We live in an era of unprecedented volatility. Trends on three major dimensions – economics, demographics, and geopolitics – combined with the exponential pace of technology change, are converging to create a challenging new reality for organisations. These forces create opportunities that we cannot even imagine, but also present new frontiers to be explored.
Top Ten Risks
% of Respondents Indicating as Top 10 Risk % of Loss
% with Plans in Place
Regulatory/legislative changes
66% 21% 58%
Damage to brand/reputation
62% 8% 67%
Increasing competition 52% 43% 57%Failure to innovate/meet customer needs
52% 30% 67%
Cyber crime/hacking/viruses/malicious codes
45% 12% 92%
Major project failure 40% 26% 87%Failure to attract or retain top talent
38% 14% 82%
Economic slowdown/slow recovery
36% 43% 52%Operational business interruption
36% 5% 81%
IT lack of technology infrastructure
26% 7% 67%
Top Five Emerging Risks in 2020
100%
70%
30%
NoYes
29%
61%
100%
70%
30%
NoYes
29%
61%Companies <$1 Billion
Overall
Companies >$1 Billion
Presence of a Formal Risk Management Department
Data Source: Aon’s 2017 Global Risk Management Survey
Risk Departments Cultivate a Comprehensive Process to Identify and Assess Current and Emerging Risks
Assessment of Major RisksIdentification of Major Risks
No formalised process4% No formalised
process5%
Industry analysis, external reports37% Consult with external service
provider/advisor28%
Risk information from other function-led processes (e.g.internal audit, disclosure, compliance, etc.)65%
Risk modeling/risk quantification analysis32%
Senior management judgment and experience65%
Senior management judgment and experience60%
63%Board and/or management discussion of risk during annual planning, risk assessment or other processes
Board and/or management discussion of risk during annual planning, risk assessment or other processes49%
46%Structured enterprise-wide risk assessment process supported by a standard toolkit and methodology
Structured enterprise-wide risk identification process judgment and experience49%
33%
19%
13% 48%
68%
Not purchased and no plans to purchase
Insurance currently purchased
Plan to purchase
61%
45%
18%
36%
19%22% 17%
15%
29%
21%
24%
64%
Not purchased and no plans to purchase
Insurance currently purchased
Plan to purchase
5%
15%
29%
21%
24%
64%
Not purchased and no plans to purchase
Insurance currently purchased
Plan to purchase
5%
Overall
Australia
EuropeNorth America
Cyber Purchasing Patterns Cyber Risk - Completed Assessment
2%Yes, quantitative
28%Yes, both, quantitative
& qualitative
32%No
14%Yes, qualitative
16%Yes, not sure what type of assessment
9%Not sure
To keep pace with the pervasive and fast evolving cyber threats that go hand in hand with the dizzying speed of technological innovation, much more progress is needed in the area of cyber risk control and mitigation.
What are the 3 most important drivers in your choice of insurers?
Coverage terms and conditions
Industry experience
Financial stability
1 2 3
What top 3 methods do you utilise to evaluate the effectiveness of your risk management program?
Identify/track involvement of risk
management within your organisation
Evaluate the extent to which risk concepts
are integrated into business investments & strategic decisions
Do not measure effectiveness
28%44% 42%
Disruptive technologies/
innovation
Failure to innovate/meet customer
needs
Damage to brand &
reputation
Increasing competition
Regulatory/ legislative changes
