Risk managers debate the complex ‘new world’ challenges

The world is grappling with a fast-moving and complex fourth industrial revolution, the full consequences of which are impossible for foresee. This means new challenges for risk managers—but also opportunities.

That was the theme of ‘New World Challenges’, a panel discussion at the Airmic annual conference yesterday, chaired by broadcaster and journalist Cathy Newman.

Matthew Drew, group security director, Rolls Royce, said that while the company faces many complex risks including supply chain disruption and growing geopolitical risks, he identified the theft of intellectual property (IP) as being one of the biggest threats the company faces.

“We are heavily exposed to the risk of theft in all sorts of ways, ranging from cyber risk to industrial espionage,” Drew said.

“The key to protecting the firm’s IP is partnerships with companies that can help us identify and manage emerging risks, and help us deal with what is coming down the line,” he added.

Angela Iannetta, group head of risk and insurance, British American Tobacco, discussed the challenges and opportunities presented by data for the business at a time when the company is also changing its offering and moving into new markets.

She foresees data becoming much more important to the company’s business model. It will leverage both structured and unstructured data to help it target customers and move into new markets and, potentially, use artificial intelligence to help it do this.

David Eveleigh, group general counsel and company secretary, Serco, commented on the importance of governance in companies, and constant changes to regulations and codes of conduct in recent years.

Eveleigh stressed that the real key to good governance is transparency and this should be set by the leadership of companies and come from the top down.

Alex Wilson, director, strategic intelligence, Baker Hughes, said the biggest risk is geopolitical. He said the scale of these risks, the number of players and their distribution, have expanded; the velocity of the risk has grown in line with an increase in the pace and complexity of communications; and the diversity of risks has increased in sync with more legislation and more independent commentators, giving rise to things such as reputational risk.