No man is an island, they say – these days the expression pretty much applies to risks as well, amid an increasingly connected world. For risk managers and (re)insurance underwriters, Russell Group has identified the connected risks trends to keep an eye out for this year.
“Connected risk is the systemic exposure of commercial organisations, their partners, suppliers, and clients to cumulative and cascading financial, operational, and reputational vulnerabilities,” the risk management and services software company explained previously. “It is caused by an inherent weakness in the interconnected architecture of today’s business-to-business relationships.”
Now here are the risk drivers for 2018, according to Russell Group:
The firm noted that these less discussed trends, if not managed correctly, will create potential challenges and opportunities for corporates and (re)insurers, respectively.
“It is often these lesser spotted trends that emerge to be the most dominant theme for an era,” said Russell Group. “For instance, in the early 1990s and 2000s, cyber insurance was a relatively new concept, pioneered in Lloyd’s of London in 2000. Yet, according to many predictions, cyber insurance premiums are expected to hit $20 billion by 2025 and is now a must-have insurance cover for many corporates.”
Source: Insurance Business