Even the risk community isn’t keen on trying to predict the next crisis, as each one seems to have a cascade effect

2022 was supposed to be the year of recovery from the global pandemic. The year when businesses - particularly in sectors worst impacted by lockdowns - could once again target growth.

But as experts in risk management know too well, there is little respite from today’s world of blindsiding shocks. 

This time a year ago, inflation was supposed to be a blip - but we are now facing the certainty of a more prolonged period of inflation and interest rate hikes.

For risk managers, it is a situation that needs to be carefully monitored and understood, with wide-ranging implications from underinsurance and insolvency to fraud and staff mental health and wellbeing.

More and more, we can see firsthand how volatile and interconnected our threat landscape is, and the cascading nature of risks. 

Just as the COVID-crisis had significant implications for supply chains, cyber risk and social inequality, the conflict in Ukraine is leading us towards recession, energy crisis and an increasingly unstable world.

The old rules no longer apply so we must adjust and consider the threats and opportunities posed by the new world order, while not ignoring the looming existential environmental crisis that we all face.

As we approach COP27, it has never been more apparent that collaboration, innovation and focus is the only way forward. But it comes at a moment in time when there has never been more division and distraction (as our annual Climate Change report explores in this edition in depth).

These are issues high on the agenda as European risk managers head to Copenhagen this October, for the first physical Ferma Conference since the pandemic. The risk association has thrown down the gauntlet to insurers to wake up and facilitate an orderly (and realistic) transition. Don’t miss our live blog as the experts thrash this out live on stage.

Meanwhile in November, StrategicRISK will be hosting its first World@Risk Climate Change and ESG Forum in partnership with the Institute of Risk Management. Join us as we bring together some of the leading thinkers in risk to future gaze and clarify the role of the risk manager in our essential journey to sustainability.

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Topics

Pinning down inflation effects