Risk factors: the top five threats to your company
27 July 2017
Businesses face all sorts of risks, which need to be assessed and managed. These risks include anything from natural disasters to political upheaval, third-party liabilities or even not being able to attract and attain top talent. Risk management and reinsurance specialist Aon, in its 2017 Global Risk Management Survey, has projected what the top risks for companies will be by the year 2020.
Economic slowdown/slow recovery
There is concern that by 2020 the economic outlook could be looking less than certain. Notable negative risks to activity include a sharper-than-expected tightening in global financial conditions that could interact with balance-sheet weaknesses in parts of the Eurozone, increased geopolitical tensions in some emerging market economies, and a more severe slowdown in China.
Globalisation and technological developments have intensified competition between businesses. Disrupting technologies and digitalisation has put pressure on businesses to create new products and services at cheaper costs to compete against their peers, while globalisation has increased the pool of companies competing with each other. In Europe, slower growth has also put a strain on some businesses.
Failure to innovate/meet customer needs