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- Published: Thu, Jul 21, 2022 07:02
According to Gartner’s latest Global Emerging Risks Report, fears of a macroeconomic downturn have quickly risen to the top of the emerging risks facing organizations. The survey was conducted in the second quarter of 2022 among 306 senior executives and risk management professionals.
“The top five risks reported by our respondents were notable for both their interconnectedness and their occurrence outside the organization,” said Chris Matlock, vice president, Legal, Risk & Compliance Practice, Gartner. I’m here. “While interrelated, many of the top risks send conflicting signals about the state of the economy. The role of the risk management (ERM) leader becomes especially important on the board.”
Gartner identified recession as one of the top five emerging risks in the first quarter, and concerns about the risk have grown since then. Notably, the top five emerging risks in Q2 are all external to the organization and can have very different impacts by region and industry.
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1. |
macroeconomic downturn |
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2. |
Growing conflict in Europe |
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3. |
State-sponsored cyberattacks |
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Four. |
energy price inflation |
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Five. |
shortage of key materials |
(N = 306 Source: Gartner, July 2022)
Figure 1. Top 5 Emerging Risks, 2Q22
Balancing short-term and long-term risks
Energy price inflation ranks among the top five emerging risks for respondents, but the level of executive attention may not yet be sufficient to effectively mitigate the risk.
The growing impact of Russia’s invasion of Ukraine could not only lead to higher energy prices, but also increased vulnerability to extreme weather events, including hurricane seasons in North America. As a result, multinationals may have geographically disparate impacts on rising energy prices, particularly in Europe, which is more vulnerable to supply shocks.
Matlock said executives must prepare for ongoing problems due to ongoing sanctions against Russia and imbalances in the availability of certain products at refineries around the world. , prices are rising across the energy supply chain, adding to existing inflationary pressures.
“In an uncertain environment, management and its ERM partners must ensure that they have processes in place to ensure they have a focus on the most pressing risks to their organization and mitigation plans for worst-case consequences. said Matlock. “ERM leaders help clarify management decisions through qualitative assessments that are tailored to the risk appetite of the organization. It’s especially helpful at times.”
A more detailed analysis is provided to Gartner clients in the full report 2Q22 Emerging Risk Report. Non-clients can read more at Emerging Risk Trends by completing a free registration.
