Effective risk management isn’t just about responding to what has happened – it’s about anticipating what might happen in the future. Identifying emerging risks is a proactive way of using vigilance to support resilience. Vigilance is described as detecting patterns that may indicate or predict risk events. Resilience is the capacity to contain and reduce the impact of risk events. Emerging risks are newly developing or evolving risks that can affect the achievement of an organisation’s objectives.
Our risk landscape is volatile and it has become increasingly so in recent times. What used to be reasonably stable and predictable is not anymore - being vigilant and resilient is important.
Examples of emerging risks
New risks have emerged in information technology including cyber and AI risk. Our changing geo-political environment has given rise to risks associated with supply chain, people, insurance and market risk. Changes in governments have given us new requirements to manage regulatory risk. Changes in societal expectations has presented the need to manage climate and ESG risk. The emergence of these risks have disrupted our markets, our economies and our business operations.
But how exactly do we identify emerging risks?
Here are some techniques you can use to stay attuned to emerging risks:
- Collaborating and consulting with peers, colleagues, strategic partners and key suppliers
- Conducting horizon scanning - being informed on current global and domestic events
- Subscribing to articles, papers, alerts and regulator updates
- Attending industry events and forums
- Having team discussions to examine incidents and events that have occurred in your industry or your area – learn from them
Asking the right questions is also critical to the process. Want to know the types of questions you should be asking to identify emerging risks?
Click the link below at access our Cheat Sheet on the questions you can ask to identify emerging risks.
If you would like to discuss your risk management program or would like support with identifying emerging risks, please feel free to give me a call.
https://the-mindful-risk-group.ck.page/8c2880cbba
Have a great day,
Bron
Mob 0498 631 462