Only six out of 10 said they are ready to handle business risks: Aon survey

About three of 10 persons have been affected by last year’s top business risks.

In 2022, cyber-attacks or data breaches became the top business risk in the Asia Pacific (APAC) region, surpassing economic slowdown or slow recovery. Thus, 61% of respondents said they were ready to face these risks in 2023.

This shift is driven by increased awareness of the expanding cyber threat landscape, high-profile data breaches, and regulatory actions, according to Aon’s 2023 Global Risk Management Survey.

On the other hand, a mere 31% stated they have been affected by last year’s top 10 risks.

The Family Takaful achieved a 20.1% Penetration Rate, reflecting the growing popularity of takaful products in Malaysia.

The region's economic growth, although facing challenges, is expected to remain active, particularly in China and India.

Failure to attract or retain top talent rose to the fourth position in business risks for 2023, highlighting challenges in diverse labour markets and the need for companies to reimagine total rewards beyond salary.

ALSO READ: Only one in 10 S’porean platform workers think about retirement planning: Survey

Top 10 risks

Rapidly changing market trends, supply chain disruptions, and concerns around regulatory and legislative changes also feature prominently in the risks faced by businesses in the region.

Notably, climate change, cash flow or liquidity risk, environmental social governance (ESG), corporate social responsibility (CSR), and intellectual property (IP) risk are absent from the top 10 risks in APAC, despite their significant implications.

Looking to the future, managing cyber risks remains a top priority, emphasising the strategic importance of cybersecurity, especially in light of geopolitical tensions and technological advancements.

The top ten business risks for Asia Pacific according to the 2023 Global Risk Management Survey are:

Cyber Attack/Data Breach
Economic Slowdown/Slow Recovery
Business Interruption
Failure to Attract/Retain Top Talent
Rapidly Changing Market Trends
Supply Chain/Distribution Failure
Regulatory/Legislative Changes
Increasing Competition
Failure to Innovate/Meet Customer Needs
Commodity Price Risk/Scarcity of Materials

Failure to attract or retain top talent and rapidly changing market trends are expected to become even more critical risks.

Organisations are advised to adopt a holistic approach to cyber risk management, define a strong people strategy, and use parametric insurance to increase resilience to unique risk exposures.

Follow the link for more news on

AON

Also Read

Medical insurance tops SME employee benefits: Prudential

China launches seven-month crackdown on industry fraud

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit