BUSINESS RISKS
Business Risks Around The World :
WHAT TO WATCH FOR BEYOND 2021
After a trying year , it is clear
that many things have changed in the business and risk management landscape which are not likely to roll back any time soon . The pandemic caused a disruption in virtually every aspect of life , and it should come as no surprise that those disruptions brought a lot of changes in terms of risk management . While some of the most vital risk areas have remained unchanged , others have quickly come to the forefront ( and with good reason ).
When reviewing these risks , it is important to keep in mind that many of them are interrelated and have effects on each other . Here are the most important risks to keep an eye on in 2021 and beyond :
• LEGISLATIVE AND REGULATORY CHANGES
It is hard to say that regulatory issues have been “ predictable ” in the past , but they are now coming faster than anyone could expect . The pandemic has dramatically increased the rate at which legislation and regulatory issues come to the front of the line and get resolved , even faster when Executive Orders are thrown into the mix . Two areas should be focused on : data and sustainability . The use of and access to data is what is now determining who is and who can be competitive in the business landscape . With regard to sustainability , things are rapidly shifting toward a lowto-zero carbon economy , which will likely change the way many businesses operate .
• MARKET DEVELOPMENTS The economy has taken a huge hit due to the pandemic . Not just in the United States , either . It has been a chain that has changed things across the world . The number of insolvencies is ever increasing , and there will almost certainly be a strong period of both market disruption and innovation coming in the next few years .
• NATURAL DISASTERS From the record-breaking number of hurricanes and tropical storms to the catastrophic wildfires in California and Australia , natural disasters are more prevalent than ever . They must be taken into account as risk exposures no matter how unlikely it is to affect a given business .
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