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The Actuary The magazine of the Institute & Faculty of Actuaries

70% of firms ready for risks, says Lloyd’s report

However 3% admitted to being less well prepared.

The report said: "This is a markedly different result from our 2009 survey, when we found ‘preparedness gaps' (defined as risks where the preparedness score was not as high as the priority score), in eight out of 41 individual risks, compared with only two out of 50 in 2011."

But it continued: "One should not ignore the fact that, for many companies, there will be a difference between actually being prepared and simply believing that they are prepared.

"But in view of the severity of financial and natural disasters over the past three years, and the rise in practical risk management measures internally, perhaps executives themselves have re-calibrated, for the better, what it means to be prepared."

The survey found that business and strategic risks edged past economic, regulatory and market risks for the top priority spot this year, with scores of 7.3 and 7.2 respectively.

The survey found the top three risks are all business and strategic risks:

  • loss of customers and orders
  • talent and skills shortages, and
  • reputational risks

The next five are all economic risks:

  • currency fluctuation
  • changing legislation
  • cost and availability of credit
  • price of material inputs, and
  • inflation

Source: Postonline