Economic slowdown is Number 1 global risk, Aon survey finds

The economic slowdown is the Number 1 most pressing risk facing business leaders, according to Aon’s 2009 Global Risk Management Survey.
“The 2009 Aon survey indicates that virtually no company, industry or country is immune to today’s unprecedented period of economic unrest,” the survey says. “While reputation risk has fallen from its top position in the firm’s 2007 survey, the importance of this threat is not diminished.
“Reputation risks impact the public’s perception of the quality, integrity and intention of an organization, influence a partner or customer’s decision to do business with a firm and may affect a government or regulator’s decision to allow a company’s actions.”
The survey is based on responses from 551 organizations in 40 countries.
The survey found the Top 10 most pressing global risks are:
1.    Economic slowdown
2.    Regulatory/legislative changes
3.    Business interruption
4.    Increasing competition
5.    Commodity price risk
6.    Damage to reputation
7.    Cash flow/liquidity risk
8.    Distribution or supply chain failure
9.    Third-party liability
10.    Failure to attract or retain top talent
Most organizations have increased their overall risk preparedness as compared to 2007, the report finds.
However, less than half of survey respondents report they are tracking and managing all components of their total cost of insurable risk.
For three of the Top 10 risks (economic slowdown, damage to reputation and regulatory/legislative changes), less than two-thirds of respondents said they have formally reviewed the risk or have a plan in place, according to Aon.