Recession fears top the list: Global: For the 2nd year in a row, CEOs and other C-Suite executives globally rank a recession as their top external worry in the year ahead. The economy was also the top risk condition for board members, CEOs, CFOs and CIOs, and made it to the top five list for all regions of the world we analyzed for 2020 except for North America. Business leaders need to think through the implications. Innovation could bring a much-needed step change to address key structural issues in the mining sector, namely: Cost reduction needs to be sustainable and a keen focus on productivity will help to manage the impact of rising costs. “With the country locked in a trade war with the US that does not look to be fully resolved any time soon, risk managers in China have chosen business interruption as their top risk, again, as the unpredictable nature of tariff announcements has made it difficult to plan accurately for the future,” said Patrick Zeng, CEO of AGCS Hong King and Greater China. Show article references#Hide article references, Top 10 business risks and opportunities – 2020 (pdf), Top 10 business risks and opportunities – 2020 – Japanese (pdf), Top 10 business risks and opportunities – 2020 – Spanish (pdf). Global business environment slightly less risky in 2020. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. The Global Risks Landscape 2020; The Global Risks Interconnections Map 2020; The Global Shapers Risk Landscape 2020; Risks for Doing Business … A new risk in the top three for China this year is cyber incidents. Findings from the study illuminate two themes that dominate the top global risks in 2020: technology and innovation, and talent and culture. This reflects greater global understanding of cyber risk and its potential impact upon businesses. Survey respondents were asked to rate 30 different risks involving macroeconomic, strategic, and operational issues. Cyber incidents have been ranked as the top business risk in the Allianz Global Risk Barometer 2020, knocking business interruption from a top spot it had held for seven consecutive years. Baker McKenzie partnered with Risk.net in its annual ranking of the top operational risks for 2020. For example, what if: The long-term goal is to increase the return on capital, while reducing the volatility of those returns. For the first time ever, Cyber incidents (39 percent of responses) ranks as the most important business risk globally in the ninth Allianz Risk Barometer 2020, relegating perennial top peril Business … With increased awareness, and first-hand experience of the negative impact, it is no surprise to see climate change in the top three Australian risks for the first time.” The top business risk voted by Australia companies was changes in legislation/regulation, followed by cyber incidents. Contributing insightful points of view to the market around productivity and digital. Exploration spend has declined significantly and even though there has been some recovery in the last two years, budgets are still half of what they were in 2012.2. Please refer to your advisors for specific advice. Global Risks 2020: An Unsettled World; The Fraying Fundamentals; A Decade Left; Save the Axolotl; Wild Wide Web; False Positive; Methodology; Acknowledgements; Survey Results. Businesses across Africa are also increasingly concerned about business interruption as it has become the continent’s top risk in 2020 from 5th in 2019,” he said. While application of technology has become business as usual, is anyone really doing it well? Cyber replaces business interruption, which has moved down into second spot, and natural catastrophes … Survey reveals disconnect between agents and their clients, Expert on new entrants, reliance on the E&S space, and more, It will use the capital to grow headcount and launch new products, Global Risks Report 2020: Leading takeaways, WEF reveals the biggest long-term risks to the global economy, The telematics value proposition for commercial auto insureds, The changing landscape of the high net worth market, At-Bay raises $34 million in Series C round. Against the backdrop of a challenging business environment, KPMG Nigeria recently released the Top 10 Business Risks in 2020/2021, a robust and comprehensive view of the top risks for the year and the next based on the perspectives of key players in the risk management process – board members, C-suites, risk … Professional service firm, KPMG, presented a report on Top Business Risks that Nigerian Business executives will face in 2020/2021, after conducting a quantitative survey. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. It’s more an opportunity than a risk now, and the one issue miners are challenged with is how to better manage data to extract value from it. As digital becomes business as usual, the threat surface that can be attacked is increasing exponentially. Innovation could bring a much-needed step change to the mining sector. Cyber incidents. UK For more information about our organization, please visit ey.com. Below are changes as of May 6, 2020. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. Allianz Risk Barometer 2020 -. 1. Mining companies will also need to re-evaluate their appetite for risk to ensure they are not missing out on new opportunities by taking a complacent or conservative approach to allocating capital. Top Risk Concerns for Business Leaders in 2020 Dec 18, 2019 Entering into a new decade, boards and C-suite leaders around the world are concerned with the escalating competition for specialized talent, … Review our cookie policy for more information. The transition to a low-carbon economy is well underway and the pressure to accelerate this transition seems to grow every day. This year's report was originally published on 6 January 2020 and updated on 19 March 2020. However, in our experience, these critical risks are often static and stay on the risk register in much the same “format” for many years. Given the competitive market for digital and data-related skills, they might be hard to get into the mining sector, given the tarnished brand we have vs. other sectors. What elevated levels of political risk mean for business in 2021. 3 | 20 key risks to consider by Internal Audit before 2020 2019 KPMG Advisory N.. Top 20 risks before 2020 3 14 8 11 19 5 7 4 9 10 15 18 6 13 20 1 2 16 12 17 Digitalization & the Internet of Things Cloud computing EU General Data Protection Regulation (EU-GDPR) Cyber security Business … While cyber and business interruption featured as top business risks in almost all countries, the final ‘top three’ spot was more hotly contested. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Operational risks: Risks that can affect key operations. (39% of responses) Cyber risk tops the Allianz Risk Barometer for the first time with businesses facing a number of challenges ... 2. Business interruption. The burning platform for innovation is clear — some mining companies may need to innovate to survive, while others may be looking at embracing innovation to thrive in today’s fast-changing environment, and to improve return on capital. Should you be looking at benchmarking to work toward best practices as an industry? The themes of license to operate and disruption run through this year’s risks, as social responsibility and broader stakeholder demands intensify alongside the need for digital transformation, greater risk taking and innovation. COVID-19 and the great reset: Briefing note #28, October 21, 2020 Geopolitics is back. Regulatory change and heightened regulatory scrutiny impacting operational resilience and production and delivery of products and services (4) Over ... 2. In fact, IA can play an important role in helping organizations manage the risk environment while ... Top 10 in 2020… On March 13, 2020, the President of the United States declared … There are … PwC asked business leaders how they plan to change as a result of the political divide starkly revealed in the election. Are you running an analogue supply chain for a digital economy? Knowing which risks to focus on is key, but so is understanding the implications and the right steps to take. Digital effectiveness remains in the top three risks and opportunities for miners and continues to be a topic executives want to discuss. Risk management leaders say data privacy regulation is the top emerging business risk on their radar. How will you retain senior employees to minimize the negative impact of attrition? These risks are – Regulatory Risk … RiskMap 2020 Special Edition updated top 5 global risks for business considering the added risks brought about by the COVID-19 outbreak. There are significant opportunities for lithium, cobalt, copper, aluminum, nickel and many other minerals. Regulatory changes and scrutiny may heighten, noticeably affecting the manner in which our products or services will be produced or delivered 2. Lower exploration budgets, fewer major discoveries and declining grades in existing deposits are particularly concerning when you consider that the outlook is for growing mineral demand as a result of the global growth and the demands of new world infrastructure. Energy becomes free, then what happens to copper? We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. Cyber replaces business interruption, which has moved down into second spot, and natural catastrophes remain in third place. There are four new risks on the radar this year: reducing carbon footprint, high-impact risks, replacement of production and innovation. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. James Stack, CEO of AGCS Australia, said: “Fuelled by rising temperatures and extreme dry weather attributed in part to climate change, these fires not only cause physical property damage, but also potential business interruption as the smoke causes hazardous air quality levels. Strong governance program and a culture of accountability, Ramp up innovation to both find new resources and extract more value from current resources, Increased mining in remote and difficult locations, Access and cost of energy and infrastructure, Focus on sustainable cost reduction programs, Encourage innovation and partnerships to help with longer-term reduction of costs, Review capital tied up in high levels of pre-stripping, advance development and stockpiles, Consider the use of contract mining vs. sale or leaseback, Create strategic joint ventures to optimize economies of scale, Reduce costs from a support function — automation in the back office. Linda Regner-Dykeman, chief agent, AGCS Canada, said it’s no surprise that BI and cyber continue to be major exposures for Canadian businesses. The start of the new decade brings about a period of huge uncertainty for the UK, with its impending exit from the European Union and the potential economic fallout from such a move. CEOs still consider recession to be the biggest business risk in 2020 Published Thu, Jan 2 2020 10:46 AM EST Updated Thu, Jan 2 2020 11:24 AM EST Jeff Cox @jeff.cox.7528 … Australia UK businesses have also selected cyber as the top business risk for 2020, followed by changes in legislation/regulation and business interruption respectively. Economic conditions in markets we currently serve may significantly restrict growth opportunities for our organization 3. Top 10 business risks and opportunities – 2020 – Spanish (pdf) Download 2 MB For the third year in a row, there have been significant fluctuations in the risks, as well as new risks coming into the top … There is certainly clear recognition that significant productivity gains can be made possible by rethinking how work is being done, and by being prepared to innovate. Companies are grappling with understanding what the workforce might look like in the future, and where they can attain these skills — build or buy? Source: EY survey over 130+ execs from the EY Global Mining & Metals sector. How will you equip future leaders with the skills needed to manage teams in a digital age? Most executives … This is largely due to contributing factors such as Information Technology (IT)/Operational Technology (OT) convergence, Internet of Things (IOT) sensors, data analytics and optimization AI. EY | Assurance | Consulting | Strategy and Transactions | Tax. remember settings), Performance cookies to measure the website's performance and improve your experience, Advertising/Targeting cookies, which are set by third parties with whom we execute advertising campaigns and allow us to provide you with advertisements relevant to you,  Social media cookies, which allow you to share the content on this website on social media like Facebook and Twitter. 1 slot, with 44% of our business risks survey respondents1 putting it at the top of the list. In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience (e.g. For many countries, concerns revolved around changes to legislation and regulation, but there was also a lot of worry worldwide about fire and explosion, and natural catastrophes. Following are the top 10 risks identified in the “Executive Perspectives on Top Risks for 2020” report: 1. Leading mining companies are recognizing the importance of reducing their carbon emissions. Shareholder activists are also driving many miners, particularly those with coal assets, to reshape their portfolios by either reconfiguring existing operations or executing divestments. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Canadian companies have ranked business interruption as their top threat in 2020, with cyber incidents coming in second place, and changes in legislation/regulation following in third. We must ensure underwriters ask the right questions in order to understand today’s risks and exposures and find solutions accordingly to help manage this uncertainty.”. How are you going to build, recruit or borrow the right skills and capabilities across the organization? Given that most cyber insurance is written in the US this risk will continue to influence the direction of our industry and encourage close portfolio reviews of silent exposures.”. © 2020 EYGM Limited. As unprecedented bushfires continue to reap havoc across multiple Australian states, it’s hardly surprising that climate change has made it into Australia’s top three business risks (in third spot). Worldwide spread of the new coronavirus led the World Health Organization (WHO) to designate COVID-19 as a pandemic on March 11, 2020. … Cyber incidents have been ranked as the top business risk in the USA for 2020. The Global Risks 2020 report from the World Economic Forum identifies cyber-related issues, such as cyberattacks and data fraud or theft, within the list of top 10 long-term risks. It enables decision automation to minimize loss across the entire value chain. Interesting shifts in the 2020 top 10 risks. License to operate and disruption run through this year’s risks, as social responsibility and broader stakeholder demands intensify. All Rights Reserved. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. According to the Allianz study, which focuses on large and small- to mid-sized enterprises in 22 industry sectors and 102 countries, cyber incidents (including cybercrime, IT failure/outage, data breaches, fines and penalties) were the top concern, followed by business interruption, changes in legislation and regulation, natural catastrophes, and market developments. There is a massive technological breakthrough in the composition of plastic or other advanced materials — how does that affect demand for metals? Eurasia Group's Top risks For 2020 The time has come to update our Top Risks 2020, taking into account how the coronavirus has accelerated the trends that worry us most. Updated strategies and recommendations for employers responding to COVID-19, including those seeking to resume normal or phased business … The extended period of elections and resultant government changes has brought uncertainty to the political environment which has created volatility in the commodity markets. Top five risks to the global economy in 2020. Make better risk management one of your 2020 business resolutions and help make this century’s 20s a better decade than the last. She commented: “Changes in legislation and regulation has moved up significantly to 3rd, chosen as a top risk by almost a third of respondents. In addition, the sector is facing greater scrutiny from end consumers, demanding a transparent ethical supply chain as well as a lower carbon footprint. Cyber incidents have been ranked as the top business risk in the USA for 2020. Economic conditions … Corporate Exploration Strategies: Overview of exploration trends, S&P Market Intelligence. It follows a year filled with significant cyber events, including the Capital One breach, which saw 106 million records exposed on March 22 and 23, 2019, making it one of the biggest breaches in history. USA Digital and technological innovation has the potential to improve productivity, safety and environmental management in the mining industry. The Economist Intelligence Unit expects global growth to stand at only 2.9% in 2020, close to decade lows. The fluctuations in the risks, as well as new risks highlight the ongoing disruption in the sector. Tensions between the US and Iran, coupled with the emergence of a novel coronavirus in China, will limit any pick-up in business … Talent and culture risks and technology and innovation risks dominate the top 10. Reflect on your risks like these flappers Corbis via Getty … Welcome to Risk.net’s annual ranking of the top op risks for 2020, based on a survey of operational risk practitioners across the globe and in-depth interviews with respondents.. As in years past, there's no great secret to the methodology: Risk.net’s team gets in touch with 100 chief risk officers, heads of operational risk … Here are the top 10 cybersecurity threats businesses face in 2020… The 2020 Gartner Legal and Compliance Hot Spots report — based on interviews and survey data from legal, compliance and privacy executives — helps prepare legal leaders by identifying five risk … Experienced mining and metals leader. The top two strategies for health organizations going forward: creating new opportunities … What creative strategies can you employ to ready your workforce for the future? The complete list of top business risks around the world in 2020, according to the Allianz Global Risk Barometer, is below: The threat landscape varies around the world. You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. Bill Scaldaferri, CEO of AGCS North America said “its no surprise” cyber incidents have emerged as the top risk for US businesses in 2020. Our organization’s … Scaldaferri commented: “Increasing connectivity and sophistication of attacks have been driving up the frequency and severity of incidents for some time. Most mining companies can clearly state their critical risks and manage the visible, high-frequency risks in their business. business models, regulatory requirements, technology disruption, and more, the opportunity for Internal Audit (IA) to identify and help companies respond to risks is ever-increasing. License to operate remains in the No. In fact, the only change to our Top 5 Risks for 2020 is the order in which we rank them, with the political and economic impacts of the pandemic pushing the risks … Companies need to assess portfolios in terms of what would happen if something radical happens. It’s worth noting that there are always opportunities in time of change. Will your digital investment strategy go from virtual to reality? Cyberattacks have the potential to put you out of business, just like the current coronavirus pandemic is doing to businesses everywhere. How do you create a compelling employee value proposition? Trade wars, tariffs, economic sanctions and protectionism have companies concerned about the instability of future markets. Volatile markets, digital disruptions in the risk landscape, growing cyber-attacks, and the ever-escalating war for talent are just a few significant risk drivers on the minds of boards of directors and executives today, according to a comprehensive 113-page report, “Executive Perspectives … Every cybersecurity transformation should promote three key principles across culture, governance and capabilities: Exploration technologies have already made significant advances as miners explore new digital technologies. The report is based on a survey of operational risk practitioners across the globe and in-depth interview with respondents. The Top Risks This Year. Miners need to think more broadly about how to maximize their returns and adopt new approaches that may be radically different from those of the past. The Global Risks Report, published by the World Economic Forum with support from Marsh & McLennan, provides a rich perspective on the major threats that may impact global prosperity in 2020 and over … China The clean energy transition is going to be mineral intensive, providing an enormous opportunity for mining companies. Other business risks to make the top 10 globally include: fire and explosion, climate change and the increasing volatility of weather, and macroeconomic developments. , please visit ey.com employee value proposition Francis Fukuyama came to believe in … risks! Grow every day license to operate and disruption run through this year: reducing carbon,! 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