This is highlighted in publications such as the World Economic Forum’s Global Risks Report, whose 2016 edition highlighted a range of near-term instabilities and longer-term structural challenges.
Yet many companies struggle to articulate the precise relevance of global and emerging risks to their business, and are poorly organized to make timely decisions.
The Emerging Risks Quandary, a new paper from the MMC Global Risk Center, explores what impedes corporate efforts and identifies how companies can blend creativity and pragmatism to look beyond predictable and controllable risks to complex uncertainties that have the potential to generate more than mere volatility in corporate earnings. Stronger risk characterization, a more enlightened use of scenarios, and better early warning data can provide a platform for senior-level discussions at an appropriate level of detail.
Responding to global and emerging risks – examples