The most significant issues facing business today, according to respondents to the first Risk Barometer survey, are reputational risk (defined as the threat of any event that can damage a company's reputation) and regulatory risk (defined as problems caused by new or existing regulations). These two risk categories received the highest scores in the Risk Barometer, indicating that they are seen as more significant issues than market risk, foreign exchange risk and country risk by the majority of executives in the survey. The third most significant threat cited by executives is IT network risk, which encompasses network security breaches and IT systems failure.
The natural hazards category is decreasing as a priority in the eyes of these risk managers predominately from the financial services sector as this is being covered primarily by insurance. Also, the frequency of events is a factor here. Reputation and Regulatory Risk are both areas that need attention in the enterprise and managers are finding it more challenging to put the correct controls and measures in place to mitigate these two growing threats to the organization.
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