KUALA LUMPUR, Oct 10 — Companies should be aware of evolving and emerging risks following the changing global economic and political landscape to manage their enterprises and to mitigate losses.
Marsh Insurance Broker (Malaysia) Sdn Bhd (Marsh) Managing Director/Deputy Chief Executive Officer, Sean Chou said managers needed to be more aware of the new risks that come with the adoption of new technologies and new emerging economies.
“Risks faced by Malaysia is not that different compared with Asia-Pacific countries, except that Malaysia is in a way protected from natural disasters.
“The top three risks faced by Malaysia are cyber threats, financial risks due to contingent and intangible losses and talent drain,” he told reporters on the sidelines of “The Changing Landscape of Risk” seminar organised by Marsh here today.
On cyber threats, Chou said that although Asia was 80 per cent more likely to be targeted by hackers compared with the rest of the world, the adoption of cyber risk mitigation measures was very low due to the lack of awareness.
As for financial risks, he said companies’ operations had evolved with the emergence of new technology and new economies, resulting in a higher reliance on the supply chain.
However, any disruption along the line might affect businesses, leading to financial losses.
On talent drain, Chou said employment benefits which do not address the different needs of employees of different age groups could result in a talent drain — one of the top risks in Asia.
“For example, medical benefits might not be attractive to younger workers but it is much needed by the older ones and they would hang on as medical is not portable after retirement.
“Companies should plan their benefit offerings and avoid the mismatch to attract the right talent and to plan for succession,” he said.
On another note, Chou said Marsh, an international insurance broker and risk adviser, aimed to maintain 18 per cent growth rate this year.
With the penetration rate for brokers in the Malaysian insurance market being less than 10 per cent, he said the situation offered vast opportunities for the group to tap into the market.
“This can be done by increasing awareness, particularly in cyber risks and other intangible business risks, to create a different kind of solution for the population and companies,” he added. — Bernama
