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Global companies adopt ERM after COVID-19: Aon



Pandemics were not a top 10 risk for four out of five companies before COVID-19, according to a new study by Aon PLC, which found that a similar proportion have now embraced the company's risk management to address crisis management.

Aon's survey was conducted during the last quarter of 2020, with more than 500 participants from organizations of various sizes in 41 countries worldwide. It found that 82% of respondents admitted to a pandemic or other major health crisis was not a top 10 risk in the organization's risk register before COVID-19.

This result is supported by the fact that the pandemic risk was ranked 60th out of 69 identified threats in Aon's Global Risk Management Survey two years ago.

After his new global business survey, Aon said that the company's risk management could not respond to COVID-1

9 better because pandemics were so far down in many risk registers. And 80% of respondents said the COVID-19 outbreak has promoted a more enterprise-wide incident management strategy.

The survey showed that less than 30% of respondents in Europe and the EMEA region had a pandemic plan in place before COVID -19. This compares with 31% in North America and 52% in Asia-Pacific (APAC), where companies already had experience of pandemic planning for SARS.

About 36% of APAC companies said they were in the transformation phase of COVID-19. compared to 29% globally. North America has the highest proportion of companies in the pandemic recovery phase of 59%.

Half of the companies surveyed expect that COVID-19 will continue to have an impact on their operations in a year's time.

Aon said that COVID-19 will mean that companies must prioritize the risks and look at new strategies for risk management in the future.

Rory Moloney, CEO of Global Risk Consulting at Aon, said that permanent changes in risk management will follow.

resilience should look ahead. "Among the top priorities for companies looking to transform their operations are the new and accelerated use of technology, redistribution of resources, workforce planning and rethinking of future work – this is just the beginning of a much more long-term development in risk management," Mr Maloney said. .

Governments around the world have taken emergency measures to support companies in the pandemic. But more can be done by companies and the insurance industry to mitigate future risks, says Richard Waterer, CEO of EMEA, global risk advice at Aon.

"Our study shows that there is also a clear need for risk transfer solutions to support efforts to reduce corporate Part of that journey will require companies to rethink access to capital along with risk, in addition to the ongoing collaboration between the public and private sectors, he says, increase global volatility and emerging risks. Successful pandemic insurance solutions in the wake of the pandemic will be more flexible, strategic, targeted and scalable, "added Mr. Waterer.

Commercial Risk Europe is a sister publication of Business Insurance, more stories from CRE here.

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