Survey Insights on Evolving Risks for Risk Managers
Survey Insights on Evolving Risks for Risk Managers
The Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA) have collaborated to unveil important findings from their latest mid-year survey aimed at U.S. risk managers. This survey serves as a significant touchpoint, supplementing their comprehensive Annual Emerging Risks Survey. The need for updated insights comes at a time when the landscape of risks is continually evolving.
Shifts in Risk Perceptions
One of the most striking revelations from the recent survey, which took place in May, indicates a notable shift in the top current risks as perceived by risk managers. While previously identified risks have fluctuated, many participants highlighted financial volatility as their foremost concern, representing a 24.1% increase in mentions since the last survey conducted in the previous November. This surge reflects an increasing unease regarding economic stability in an unpredictable market.
Current Risks Ranking
In the May survey, financial volatility ranked at the top, followed closely by globalization shifts, which garnered 7.4% more responses than before. It’s intriguing to note that wars, including civil conflicts, have significantly dropped in urgency, falling entirely out of the top five current risks list, attributed to an 11.2% decrease in concern.
Examining the Emerging Risks
Despite changes in current risks, the perception of emerging risks remains somewhat steady, although slight shifts have been observed. The mid-year survey showed that while issues related to warfare have slipped down the rankings, financial volatility has gained prominence as an emerging risk, climbing from sixth to second place.
Key Emerging Risks Findings
The nuances within the ranks of emerging risks highlight an important ongoing debate among risk professionals. In the most recent survey, disruptive technologies have risen as a top concern alongside economic factors, suggesting a broader acknowledgment of the impact technology can have on global dynamics and potential vulnerabilities facing organizations.
Responses to Economic Factors
Another fascinating aspect of the survey was the significant concern regarding economic downturns, opposing views on inflation indicating more stable perceptions of this issue. It shows how risk managers are increasingly focused on the broader economic picture, especially given the volatility seen in markets recently. David Schraub, a key author of the report, notes the importance of conducting a mid-year survey to capture real-time perceptions without the bias of immediate events.
Survey Methodology and Participation
The May 2025 flash survey consisted of responses from 150 participants across a variety of domains, including life, health insurance, pensions, and overall risk management. The findings yielded valuable insights, showcasing how risk managers assess and rank current concerns along with emerging risks. The survey employs a framework categorizing perceived risks, providing a robust overview of emerging themes within the risk management community.
Conclusions and Future Directions
This ongoing research underlines the crucial role of understanding how risks evolve in today’s rapidly changing world. As organizations navigate a myriad of challenges, these findings will help steer their strategies and actions going forward. By consistently revisiting these perceptions, risk managers can develop more resilient frameworks and maintain readiness in the face of uncertainty.
Frequently Asked Questions
What are the top current risks identified in the May 2025 survey?
The top current risks include financial volatility, globalization shifts, failed and failing states, climate change, and liability regimes.
How does this mid-year survey differ from the annual survey?
The mid-year survey provides timely insights into rapidly changing risks, allowing for a more immediate reflection on the risk manager's perceptions versus the more comprehensive data collected annually.
What prompted the CAS and SOA to conduct this survey?
The ongoing changes in the global risk landscape and the need for timely data regarding risk perceptions among managers pushed the need for updated insights.
Why is the perception of financial volatility increasing?
Rising concerns over market instability, influenced by global events, have heightened awareness around financial volatility among risk managers.
How many participants were involved in the May 2025 survey?
The survey involved 150 participants from various sectors, including life insurance, health, and risk management, providing a diverse range of insights.
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