Top risks in Asia-Pacific 2016

StrategicRISK surveyed more than 200 risk and insurance managers on the top risks facing their business. Click on the interactive graph below to see how risk ratings have evolved over the past two years

Ripped from the headlines – this year’s top worries

Economic conditions, cyber security and increased competition are the top three concerns keeping Asia-Pacific risk managers up at night, according to the annual StrategicRISK Asia-Pacific Risk Survey.

More than 200 senior risk and insurance managers cast their votes on the top risks facing their firms this year, with ‘economic conditions’ maintaining the top spot. The risk of increased competition rises one place to second, while cyber risk (which took fifth position in 2015) rounds out the top three.

Commenting on the results (see graph, above) Singapore-based healthcare risk manager Roland Teo said: “The top 10 risks are consistent with the news headlines in the past year – unprecedented political unrest, cyber attacks and cases of innovative/ disruptive business models/technology threatening the survival of the many conventional businesses.”

Sterling Risk Solutions chief operating officer Zalina Jaflus said the 10 were interconnected: “When one risk shifts its position, it inevitably affects the other related risks.” Swiss Re Corporate Solutions Asia-Pacific chief executive Fred Kleiterp agreed: “A failure to attract and retain talent could result in a failure to innovate, which may in turn lead to damage to company reputation/ brand. Equally, a cyber attack could also result in damage to company reputation/brand.”

The big movers in this year’s top 10 are ‘failure to innovate’ and ‘political risk’. ‘Failure to innovate’ entered the list last year, in 10th spot, and is now sixth.

Seven West Media head of risk and audit Mark Wilson said: “We now live in a world where, more than ever before, you innovate or die.” He added that “mitigation is all about being agile, joining the disruptors and keeping pace with change”.

Political risk – a new entry in the top 10, in seventh place – follows events such as Britain’s vote to exit the EU, the US elections and conflicts in the Middle East.

Kleiterp said the implications for businesses “are substantial”. Firms can minimise the impact, said Teo, by looking through a holistic, integrated risk management framework “focusing on credit risk, resilient supply chains and the protection of assets and people”.