According to the annual Excellence in Risk Management survey by Marsh and RIMS, 48% of risk professionals believe that, because of evolving risk complexity, forecasting critical business risks will become more difficult over the next three years.“The interconnected dynamics of geopolitics, technological advances, global economic integration, social instability, climate change and more mean that the manifestation of one risk is increasingly likely to influence others,” the survey reported.
This means that risk professionals have to identify and evaluate an emerging risk on its own merits, as well as determine how it might effect the existing risk portfolio.
To do this, risk professionals must collaborate across the organization and with senior leadership to understand the intersection of risk and strategy, adopt predictive analytics tools to enhance decision-making, and consult a broad array of information sources to stay abreast of emerging risks.