Most companies understand that they must address risk to remain competitive and grow their business. However the real challenge for business lies in understanding and developing the tools and solutions necessary to succeed in the face of the ever-accelerating change and complexity of today’s risk landscape.
So said Lambros Lambrou, CEO of Aon Risk Solutions Australia, a risk management business of Aon plc ahead of the tenth annual Aon Advanced Risk Finance Conference, which kicks off in Melbourne on 8 October.
Lambrou points out that risks which now appear high on many organizations’ agendas barely existed 10 years ago.
According to Lambrou, the breadth and variety of risks businesses now face requires them to mitigate against a wider range of issues than ever before, from white-collar crimes to cyber risk.
“The potential ramifications of cyber risk, which has been described as “the asbestos of risk”, are widely underestimated," says Lambrou."This applies not only when it comes to individuals’ privacy, but for the integrity of entire organisations. That includes major liability issues at the Board and Director level right through to the very real threat that cyber risk poses to undermining everyday operational capability.”
Lambrou notes that tThe risk management industry has become the poster child for resolving the vexed question of how to put big data to use, and in so doing has transitioned from being a relationship, intuition-based industry to one that is increasingly truly data driven.
“An organization’s people is its most valuable asset. People risk is often at the heart of our conversations with clients, and rightly so. Failing to properly mitigate against this risk will have catastrophic outcomes for any business,” says Lambrou.