Article:

Global Risk Landscape 2019

02 July 2019

Original content provided by BDO Finland

Social media and the 24-hour news cycle are putting businesses at risk as hype distracts from the more serious threats to businesses. Business risk assessment and management are being impacted by what’s referred to as black swans; attention-grabbing issues that are difficult to predict.

This is the biggest takeaway from the Global Risk Landscape 2019 report. It presents results from 500 surveyed C-suite executives and senior risk experts, across all major industries globally.

Despite the risks of distraction, the research also shows that most companies are appropriately prioritizing risks on their registers according to their respective impact. New business risks, for example, are not always given higher priority than longer-standing risks.

The report suggests that concerns have narrowed from the general to the more specific. Regulatory risk has dropped out of the top three perceived risks. The top three are ranked as follows:

  • Damage to reputation and brand value
  • Risk of computer crime (like hacking or malicious viruses)
  • Economic slowdown and slow recovery

We have also identified significant changes in the top business risks for which respondents feel least prepared. The report explores how organizations can effectively balance mitigating short-term risks based on media hype with long-standing risks that could affect their business operations.

As part of the Global Risk Landscape 2019 report, we have prepared three regional risk white papers that explore the differing business risks and associated attitudes for EMEA, the Americas, and APAC regions.