Emerging Risks

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Emerging Risks It is a risk resulting from a newly identified hazard to which a significant exposure may occur, or from an unexpected new or increased significant exposure and/or susceptibility to a known hazard. Emerging risks have high potential for loss as they often go unrecognised until they materialise in unexpected large-scale, high-impact risk events, or spontaneously developing trends. For example: Increasing cyber attacks due to the rise of digitalisation worldwide. 2013: Grounding of Dreamliners Flood in Thailand 2011 and Pakistan 2022. 2001: Attack on the World Trade Center Emerging risks are particularly important in the context of strategic planning, because strategic planning has a longer term horizon, assumptions about the future are much more critical and are much more likely to become invalid during the planning horizon. Emerging risks are identify by 1) Conduct emerging risk reviews. 2) Integrate reviews into the strategic planning process. 3) Identify assumptions and perform disciplined assumption testing. 4) Challenge conventional thought processes and expectations. 5) Apply new and developing methodologies to better understand and predict risk. Research has has proven so many emerging risk is our society that need attention there vary from: -Advances in medicine -Artificial Intelligence -Asbestos -Climate related disasters -Cyber risk -Disruption of critical infrastructure -Endocrine Disruptors -Food safety and food security -Fracking -Genetically Modified Organisms -Implants -Legal Threat -Medical Malpractice -Megacities -Microplastics -Nanotechnology -Obesity -Pandemics -Pharmaceutical risks -Political Violence and Terrorism -Pollution -Regulatory Environment -Resistance to Antibiotics -Resource supply risk -Shifting range of pathogens -Supply chain risks -Technology risks -Toxic Chemicals Emerging risks if not mitigated, they can impair lives, cause damage and necessitate unexpected expenditure for households and businesses. They can be expensive for insurers too, via claims, financial losses and operational challenges. Regulations can shape risk emergence. Changes in regulation and market conditions can also shape potential insurance impacts and opportunities. But legislation can also have beneficial effects on risk mitigation, if it incentivises prevention and punishes risky behaviour. This was and will remain the case for many forms of environmental pollution. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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