Join the dots: risk connectivity
StrategicRISK surveyed more than 200 risk and insurance managers across Asia-Pacific about risk connectivity. Below are the 2016 results. Hover your mouse over any risk (or click and drag it) to see those risks that are most connected to it.
The domino effect
In an increasingly connected global economy, the knock-on effect of risk incidents is becoming an ever-greater challenge for corporates to manage.
In the third annual StrategicRISK Asia Risk Report survey, risk managers were asked to vote on the risks they felt were most connected.
This year, economic risk came out as the risk with the most connections. It pushed ‘damage to reputation/brand’ down to second place this year. Interestingly, the risks most strongly connected with damage to reputation were all cyber/technology related. That is, risk managers chose a ‘targeted cyber attack’, ‘systems failure’ and ‘data loss’ as being the top three risks most connected to a potentially brand damaging event.
The two risks that were voted as having the strongest connection were political risk and regulatory risk – perhaps unsurprising given the amount of unrest and change across the world in this area over the past 12 months. Commenting on the results, 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. He said: “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.”
To view the top risks in Asia-Pacific, click here.