INFOGRAPHIC

Unpacking the gaps in risk management

From climate shocks to trade restrictions, businesses are misprioritising key risks and paying the price. Our infographic highlights critical blind spots and offers actionable insights to help navigate out-of-sight risks.

Sponsored by

Out-of-sight risks have had substantial negative impacts on businesses

Out-of-sight risks often go unnoticed or are undervalued despite their potential impact, and they can lead to disruptions within an organisation.

High consequences on respondents' finances, supply chains and business functions

Areas in which past out-of-sight events have had substantial negative impacts for the surveyed companies by share of respondents

Misprioritisation of risks to blame

Factors contributing to misprioritisation include communication, inadequate data insights and fragmented risk management. Additionally, by preexisting beliefs, limited historical experience with emerging risks, short-term thinking and a tendency to discount past events can impede objective risk assessment.


Out of sight, out of mind for C-level executives

The share of respondents deeming specific risks to be of high priority and high impact over the next 3-5 years

Businesses are not ready for these risks

Recognising and prioritising risks is only the start. Many businesses ultimately lack resilience owing to shortcomings in continuous risk assessment, poor stakeholder engagement, and gaps in mitigation and prevention measures.


Unambitious actions

Share of respondents indicating "considering to employ, but no plan" for the following risk-management strategies over the next 3-5 years

Risky business reimagined

Strategies for prioritising and dealing with out-of-sight risks

  • 1

    Foster a resilient risk culture through transparent communication and proactive, ongoing risk reassessments

  • 2

    Secure C-suite buy-in for long-term risk management through knowledge transfer and up-skilling of executives

  • 3

    Foster collaboration by breaking silos with clear communication and senior leadership support

  • 4

    Invest in advanced data-insight tools and skills to generate actionable insights

  • 5

    Strengthen preparedness by focusing on prevention to address risks before they materialise

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Economist Impact bears sole responsibility for the content of this report. While every effort has been taken to verify the accuracy of this information, Economist Impact or the sponsor cannot accept any responsibility or liability for reliance by any person on this report or any of the information, opinions or conclusions set out in this report. The findings and views expressed in the report do not necessarily reflect the views of the sponsor.

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