What are the five most pressing risks in Asia this 2024?

FM Global spell out ways businesses can build resilience in the anticipated risks of 2024.

In Asia, where resilience is now indispensable for success amid diverse landscapes, business leaders must address pressing risks in 2024, Hamish Ravindran, Vice President, Client Service Manager for the Asia Operations at FM Global warns. 

Effective risk management is crucial for business continuity, especially in the face of simultaneous challenges and a persistent hard market cycle, Ravindran said in his insight titled “A guide to building business resilience in 2024”.

The impact of events like COVID-19 and logistical challenges underscores the need for diversified and resilient supply chains. 

Extreme weather events and geopolitical uncertainties require businesses to update and strengthen their continuity plans, including alternative suppliers and routes.

The rise of ransomware attacks and data breaches demands a focus not only on protecting information technology networks but also on safeguarding operational technology networks. 

As businesses digitize, proactive measures are essential to mitigate the potential physical damage or disruption from cyber threats.

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The increasing frequency of climate-related risks, particularly flooding, necessitates a thorough understanding of their impact on operations. 

Companies must invest in appropriate mitigation measures, such as physical barriers and climate risk-related reporting to fulfill obligations like the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Transitioning to renewable energy sources is critical for emission reduction, but it introduces new risks like cyber threats and extreme weather. 

Collaboration with insurers can help build resilience into transition strategies, ensuring careful planning to minimize potential downtime and competitive advantage.

Despite potential inflation impacts diminishing, rising claims costs emphasize the importance of better risk management. 

Companies can invest in risk quality by using better materials for construction or leasing locations and installing appropriate fire protection. Accurate and up-to-date values at insurance renewals enhance coverage confidence.