business risks in south korea

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Cyber risk topped the list as the number one current and predicted future risk globally, its highest rank since the inception of the survey.

Challenging market conditions such as supply disruptions, delayed infrastructure projects, and workforce shortages are casting a shadow over business leaders in South Korea planning for 2023.

This is per Aon's 2021 Global Risk Management Survey for South Korea, which gathers input from risk managers globally every two years to identify key risks and challenges their organisations are facing. The 2021 edition surveyed more than 2,300 respondents in 60 countries/territories across 16 industries at both public and private companies.

With this context, we deep dive into the results for South Korea to find cyber risk topped the list as the number one current and predicted future risk globally, its highest rank since the inception of the survey.

In the previous year (2021), business interruption and economic slowdown had topped the list, while property damage and environmental, social and governance (ESG) risks were cited as two of the projected top five risks for 2024.

On the other hand, at present, organisations are shifting their focus from event-based to impact-based risk assessments: for example, business interruption was once seen as a linear risk, but COVID-19 and geopolitical risks have demonstrated how it can affect multiple industries and companies simultaneously and globally.

Kevin Kim, CEO, South Korea at Aon, said: "The COVID-19 pandemic has exacerbated supply risks, inflation and economic slowdown, revealing new risks and re-ordering priorities for organisations. Leaders must manage these immediate risks without compromising firms' ability to invest in managing the risks of tomorrow."

The top 10 risks for business leaders in South Korea are:

1. Business interruption
2. Economic slowdown/slow recovery
3. Corporate social responsibility (ESG)
4. Pandemic risk/health crises
5. Increasing competition
6. Supply chain or distribution failure
7. Accelerated rates of change in market factors
8. Regulatory/legislative changes
9. Property damage
10. Environmental risk


Image / Shutterstock

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