US: For US CEOs, a recession rose from being their 3rd biggest concern in 2019 to their top one in 2020… China 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. 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. UK 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. 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. It enables decision automation to minimize loss across the entire value chain. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. In the 1990s, adherents of Francis Fukuyama came to believe in … Global business environment slightly less risky in 2020. Automation and increased maturity in the use of data is proving to have significant benefits to large mining operations, in terms of providing an uplift in productivity and hence reduction in production costs per tonne. 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. 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 … 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 … 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. 1 slot, with 44% of our business risks survey respondents1 putting it at the top of the list. 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. ... (CCPA) will take effect in January 2020… Survey respondents were asked to rate 30 different risks involving macroeconomic, strategic, and operational issues. On March 13, 2020, the President of the United States declared … We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. 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. 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. Below are changes as of May 6, 2020. Please refer to your advisors for specific advice. Business leaders need to think through the implications. Our organization’s … Here are the top 10 cybersecurity threats businesses face in 2020… Updated strategies and recommendations for employers responding to COVID-19, including those seeking to resume normal or phased business … In fact, IA can play an important role in helping organizations manage the risk environment while ... Top 10 in 2020… She commented: “Changes in legislation and regulation has moved up significantly to 3rd, chosen as a top risk by almost a third of respondents. 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. Cyberattacks have the potential to put you out of business, just like the current coronavirus pandemic is doing to businesses everywhere. The report is based on a survey of operational risk practitioners across the globe and in-depth interview with respondents. 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. The Economist Intelligence Unit expects global growth to stand at only 2.9% in 2020, close to decade lows. Bill Scaldaferri, CEO of AGCS North America said “its no surprise” cyber incidents have emerged as the top risk for US businesses in 2020. 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. 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 … Other business risks to make the top 10 globally include: fire and explosion, climate change and the increasing volatility of weather, and macroeconomic developments. For more information about our organization, please visit ey.com. This reflects greater global understanding of cyber risk and its potential impact upon businesses. 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. Talent and culture risks and technology and innovation risks dominate the top 10. License to operate and disruption run through this year’s risks, as social responsibility and broader stakeholder demands intensify. Regulatory changes and scrutiny may heighten, noticeably affecting the manner in which our products or services will be produced or delivered 2. It’s worth noting that there are always opportunities in time of change. 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. For example, what if: The long-term goal is to increase the return on capital, while reducing the volatility of those returns. Digital and technological innovation has the potential to improve productivity, safety and environmental management in the mining industry. Digital effectiveness remains in the top three risks and opportunities for miners and continues to be a topic executives want to discuss. Interesting shifts in the 2020 top 10 risks. 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). The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. Companies need to assess portfolios in terms of what would happen if something radical happens. Australia Canada How will you retain senior employees to minimize the negative impact of attrition? Tensions between the US and Iran, coupled with the emergence of a novel coronavirus in China, will limit any pick-up in business … 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). (39% of responses) Cyber risk tops the Allianz Risk Barometer for the first time with businesses facing a number of challenges ... 2. Business interruption. 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. What elevated levels of political risk mean for business in 2021. 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 … How will you equip future leaders with the skills needed to manage teams in a digital age? Scaldaferri commented: “Increasing connectivity and sophistication of attacks have been driving up the frequency and severity of incidents for some time. Cyber replaces business interruption, which has moved down into second spot, and natural catastrophes … Trade wars, tariffs, economic sanctions and protectionism have companies concerned about the instability of future markets. Most executives … Allianz Risk Barometer 2020 -. Most mining companies can clearly state their critical risks and manage the visible, high-frequency risks in their business. Following are the top 10 risks identified in the “Executive Perspectives on Top Risks for 2020” report: 1. All Rights Reserved. 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 … Worldwide spread of the new coronavirus led the World Health Organization (WHO) to designate COVID-19 as a pandemic on March 11, 2020. Will your digital investment strategy go from virtual to reality? 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 … In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. Innovation could bring a much-needed step change to the mining sector. EY | Assurance | Consulting | Strategy and Transactions | Tax. What creative strategies can you employ to ready your workforce for the future? 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. Findings from the study illuminate two themes that dominate the top global risks in 2020: technology and innovation, and talent and culture. It focuses on a range of issues, including digitalization, business resilience, organizational change, and geopolitical risks. There are four new risks on the radar this year: reducing carbon footprint, high-impact risks, replacement of production and innovation. The top two strategies for health organizations going forward: creating new opportunities … Reflect on your risks like these flappers Corbis via Getty … 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. The transition to a low-carbon economy is well underway and the pressure to accelerate this transition seems to grow every day. The Global Risks Landscape 2020; The Global Risks Interconnections Map 2020; The Global Shapers Risk Landscape 2020; Risks for Doing Business … Source: EY survey over 130+ execs from the EY Global Mining & Metals sector. 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. Contributing insightful points of view to the market around productivity and digital. 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