May 4, 2007—Multinational corporations are facing increasingly diverse, complex and exotic risks, and may not have all the resources in place to manage them effectively, according to Aon’s first Global Risk Management Survey.
More than half of the survey’s respondents said they weren’t prepared for the risk they rated as most worrisome – damage to reputation. Business interruption was cited as the second key risk, and next was third party liability risk concerns.
Rounding out the top five risk concerns, based on the survey’s results, are distribution or supply chain failure, and market environment.
Other top ten risk concerns rated by survey respondents are, in order: regulatory changes; failure to attract or retain staff; financial risk; physical damage; and mergers and acquisitions and disaster recovery plan failure are tied for tenth place.
The survey also indicates that corporate boards recognize the importance of risk management and are engaged in the review of risk issues.
Aon’s Global Risk Management Survey 2007 was conducted in late 2006 and early 2007 by Aon Global Risk Consulting, and is based on responses from 320 organizations in 29 countries. For more information, see the Web site.
