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RISK: Industry must develop consistent framework to ID emerging risks: Marsh/RIMS

April 11, 2016   by Staff

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risk-balanceCyber attacks, regulation and talent availability are today’s largest emerging risks, a Marsh and RIMS report reveals. And, survey respondents said, it will only become harder to forecast what business risks companies should watch out for.

The respondents agreed the industry must do more to establish a framework for identifying emerging risks. Practices currently vary widely between companies, with 60 percent primarily using claims-based reviews, and 38 percent using predictive analytics.

“The widespread use of claims-based reviews means that a majority of organizations are relying on studying past incidents to predict how emerging risks will behave rather than using predictive analytic techniques like stochastic modeling and game theory to help inform their decision making,” said Brian Elowe, Marsh’s US client executive leader and co-author of the report.



This story was originally published by Canadian Insurance Top Broker.