The world is a volatile place. The risks facing organisations, both European and those based elsewhere, are myriad and ever evolving. But some risks stand out due to their potential for widespread and long-lasting impact.
The FERMA Foresight Committee has highlighted four critical areas that will demand particular attention for the years to come. These risks, described in more detail throughout this report, are:
- Geopolitical Shifts
The global political landscape is undergoing a period of significant transformation, with rising tensions, shifting alliances and the emergence of new global powers. These changes create uncertainty and instability, affecting trade, investment and supply chains. - Technological Acceleration
Rapid advancements in technology, particularly in areas like artificial intelligence (AI), automation, and biotechnology, are transforming industries and societies at an unprecedented pace. While these advancements offer opportunities, they also present challenges, including the potential for job displacement, ethical dilemmas, a decline in European competitiveness and increased cybersecurity risks. - Human Capital
Attracting, developing, and retaining talent is becoming increasingly challenging in a rapidly changing world. Demographic shifts, evolving skills requirements and changing employee expectations require organisations to rethink their approach to managing human capital. - Climate Change
The impacts of climate change, including extreme weather events, rising sea levels and resource scarcity, pose significant risks to businesses, the insurance landscape and society as a whole. Organisations are aware that they must adapt to these changes and contribute to mitigating their impact.
These four areas represent interconnected and complex challenges that will shape the risk landscape for years to come.
