Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • App Trucker Path Launches Retail Insurance Agency
  • Berkley Explains Property Market, Company Appetite
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

Organizations Miss Competitive Advantage by Underemphasizing Emerging Risks: Marsh

May 19, 2021
Email This Subscribe to Newsletter
  • Article

Cyber attacks, climate change, geopolitical unrest — organizations agree on what some of the emerging risks that pose threats are. But they lag in understanding just how much of a threat they can be.

Despite a broad consensus across large and midsize organizations about the rising threat posed by a range of emerging risks, the vast majority continue to overlook and underemphasize the potential impact of these risks on their businesses, according to the Marsh Risk Resilience Report.

Based on a global survey of nearly 1,000 organizations by the insurance broker Marsh, the report highlights large disparities in the perception of and response to threats posed by pandemic, cyberattack, emerging technologies, climate change/environmental, social, and governance (ESG)-related issues, regulatory changes, and geopolitical risks.

A risk resilient organization is able to gain a competitive advantage over less-prepared peers through growth opportunities seized during times of operational and/or financial stress, the report says.

While 75% of respondents to the survey believe that their risk management and insurance buying processes are aligned to their long-term growth strategies, only 25% have a comprehensive or formal process in place to evaluate and model the impact of these emerging risks on their business. This comes despite respondents overwhelmingly identifying these six key emerging risks as increasingly critical, long-term threats to their organizations’ success, Marsh notes.

“The findings suggest a significant perception gap with firms’ risk management functions prioritizing short-term threats over those that are high severity but lower frequency. This potentially leaves them vulnerable to immediate and long-term disruptions to their operations, assets, and revenue streams,” the report concludes.

The report maintains that risk-resilient firms can gain competitive advantage as new challenges continue to emerge, and the risk landscape grows increasingly complex. A risk resilient organization is able to “anticipate risk, minimize losses, and quickly resume business as usual following an event,” gaining a competitive advantage over less-prepared peers through growth opportunities seized during times of operational and/or financial stress, the report notes.

“The COVID-19 crisis, the temporary closure of the Suez Canal, major cyber-attacks, and other recent events, have all exposed the fragility of global systems and serious shortcomings in organizations’ preparedness to manage major crises,” said John Doyle, president and CEO, Marsh, adding that “effective strategies to build more resilient businesses will not only facilitate faster recovery but also increasingly become a competitive advantage.”

Doyle also said the survey findings show that more work needs to be done in anticipating and modeling key emerging risks as they develop. “Resiliency is a journey that organizations need to prioritize,” he said.

Marsh’s diagnostic tool recommends organizations prioritize four common steps and behaviors to improve resilience: anticipating important risk issues; connecting risk management to business strategy; avoiding gaps in the perception of preparedness; and measuring relevant data. Together, these steps can transform risk management and support organizations in becoming more resilient, Marsh concludes in the report.

The Marsh Risk Resilience Report is based on a survey of about 1,000 Marsh clients conducted in early 2021 across nine regions. Respondents represented more than 36 industries, including manufacturing, energy, real estate, retail, construction, health care, banking and financial services, and professional services The survey’s objective was to measure respondents’ resilience in six emerging risk areas: climate/ESG, cyber/technology, emerging technologies, geopolitical, pandemic, and regulatory.

Source: Marsh Risk Resilience Report

Topics Trends

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Update: Hurricane Melissa Churns Toward Jamaica as Category 5 Storm
Trucking App Trucker Path Launches Retail Insurance Agency
GEICO Sues Medical Firms in Florida, NY Over Alleged No-Fault Auto Fraud
Rotting Apple: Berkley Explains Property Market, Company Appetite

Interested in Emerging Risks?

Get automatic alerts for this topic.

Email This Subscribe to Newsletter
  • Categories: National NewsTopics: building resiliency, business cyber risk, climate risk, covid-19, emerging risk report, environmental social governance (ESG, Geopolitical Risks, pandemic risk, regulatory risk, Research and Trends, Risk Management
  • Have a hot lead? Email us at newsdesk@insurancejournal.com
More News
Reuters: Iran, Russia and the New Zealand Insurer That Kept Sanctioned Oil Flowing
Ryan Specialty Agrees to Acquire Canadian MGU Stewart Specialty Risk Underwriting
Ex-PIMCO Executive Plans to Launch Europe’s First ETF Based on Catastrophe Bonds
Hurricane Melissa Nears Jamaica as Island’s Worst-Ever Storm
More News Features

Read This Next

  • Organizations Miss Competitive Advantage by Underemphasizing Emerging Risks: Marsh
  • Suspects in Louvre Heist in Custody After Week-Long Manhunt
  • An Unsustainable Trend – Declining P/C Rates and Rising Cost of Risk: Marsh's Doyle
  • 3 Emerging Risks to Watch: Biogenic Materials, Modular Nuclear Reactors, Farm Tech
  • What to Consider When Building Insurance Programs for Aging Properties

Insurance Jobs

  • Business Development Representative - Remote/Pittsburgh, PA/Allentown, PA
  • Property Liability Claims Supervisor - Wilsonville, OR
  • Regional Sales Manager - Irving, TX
  • Senior Underwriter - Denver, CO ( Hybrid)
  • Direct Sales Agent Specialist (2745) - Blytheville, AR
MyNewMarkets
  • Bigger Piece of the Pie: Surplus Lines Market Hits New Record as Specialty Lines Continue to Grow in Prominence, Market Share
  • Death and Insurance (Not Taxes): Part One
  • AI for Agents
  • How to Attract the Next Generation to Insurance
  • 5 Evolving Trends Shaping Architects and Engineers Coverage
Claims Journal
  • PepsiCo Resolves Lawsuit Over Gatorade Bar Health Claims
  • Five New Members Join CAPA Board of Directors
  • J&J Talc Cancer Suits Jump 17% After Failed Settlement Effort
  • Canada Pension Fund Sued by Young People Over Climate Risks
  • HSBC to Take $1.1B Hit After Luxembourg Court Ruling in Madoff Case
Academy of Insurance education
  • October 21 E&S Property Underwriting
  • October 23 Gotchas That'll Getchya - Latest Policy Language That'll Get You Sued
  • October 30 Challenges in Agency Mergers – Reducing Staff Flight and Avoiding E&O Claims
  • November 6 Risk and Insurance for Digital Nomads

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map