The past three years have been turbulent. Major crises such as climate change, the Covid-19 pandemic and the Ukraine conflict have changed risk perception. These events have rapidly disrupted businesses across the globe. Traditional risk measurement when addressing these focuses on likelihood and impact – but the dimension of velocity has become critical.
How is increasing risk velocity affecting businesses?
Increased interconnectivity and interdependence of systems, brought on by digitalisation and globalisation has created an environment where one disaster can contribute to another. This is resulting in higher risk velocity, i.e. the speed by which a risk impacts a business and materialises.
To better understand the impact this is having on CFOs, Lockton has conducted a survey and produced a report to ascertain how they are managing this.
The report delves into the three key findings from the survey results, as well as the challenges and four key recommended areas of focus when CFOs need to enhance corporate resilience and adapt their risk management approach.
About the research
In partnership with Longitude, a Financial Times company, in Q1 and Q3 2022, Lockton surveyed 475 CFOs and senior finance leaders. As the stewards of the financial health of their businesses, CFOs are responsible for the current approaches, and sentiments, to strategic risk management.
Respondents represented companies with a minimum of $100m (USD) revenue, and were based in the following countries: Argentina, Australia, Brazil, Chile, China, Colombia, Denmark, Egypt, Hong Kong, Ireland, Mexico, New Zealand, Norway, Peru, Saudi Arabia, Singapore, South Africa, UAE and the UK.
Industries represented in the sample included energy, financial services, healthcare, hotels, manufacturing, professional services, retail, real estate and construction, transport, and telecoms, media and technology.