CRO Forum identifies new risks in latest Risk Radar
The CRO Forum’s Emerging Risk Initiative has released its update on emerging risks, adding Social Fragmentation and Economic trade conflicts and sanctions to the 2024 update of the Emerging Risk Radar. The publication identifies and communicates emerging risks and major trends that could affect the insurance industry over the next ten years.
The CRO Forum consists of a group of European chief risk officers (CROs) from insurance companies that share ideas and benchmark risk management practices. One of its working groups is the Emerging Risk Initiative, in which NN participates. This working group publishes the Emerging Risk Radar on an annual basis.
New risks for 2024
The new risks added to the Radar in 2024 are Social Fragmentation and Economic trade conflicts and sanctions. The former refers to widening societal divisions and disparities as well as more polarisation. The latter includes nations and alliances that seek to defend or increase their influence on a global and regional scale, and impose economic restrictions and sanctions on goods, services, investments, knowledge and technology. The report also assesses and updates major trends.
Ivo Roest, manager Enterprise Risk & Integration at NN Group: ‘Emerging risks consist of new or developing risks as well as existing risks that are difficult to measure. They are the shadows of tomorrow’s challenges; shining a light on them today allows us to anticipate, prepare and adapt to these risks, if they may prove to grow material over time. We have seen that the inherent complexity of our operating environment has increased over the last few years, as shown by the topics portrayed in this year’s radar, such as climate change, cyber risk, social fragmentation and many others. Next to protecting our own company, we can also help our customers by designing products and services to address these challenges.’