Global risks “most dangerous” for organisations

Global risks are among the most dangerous an organisation can face, Airmic chief executive John Hurrell has warned. Writing in a report published by the Institute of Directors in co-operation with Airmic, he urged companies to take steps to increase their resilience and adaptability.

“Global risks also offer opportunities for well-prepared businesses,” he said. “The very fact that such risks are systemic means they are likely to affect your competitors as well as you, and then the most resilient companies will survive at the expense of the rest.”

The report, ‘Responding to Global Risks: a practical guide for business leaders,’ analyses the Global Risk Report published by the World Economic Forum earlier this year.

It warns that business leaders are not doing enough to prepare for developments such as government debt crisis, extreme weather events and social instability.

In his contribution, Hurrell highlighted some of the lessons from ‘Roads to Resilience,’ the research published by Airmic and Cranfield School of Management in January, in particular the need to be adaptable and develop effective risk radar.

“Although these issues are for the board to address, risk managers have a key role to play in providing information, providing a catalyst for action and ensuring that the necessary controls are in place,” he said.