Businesses Urged to Proactively Manage Interconnected Risks
Annacel Natividad, president of Parima and chief risk officer at Aboitiz Foods Group, has urged businesses to take a proactive approach to managing the new risk order. Speaking to Commercial Risk Asia, Natividad explained that the theme of this year’s Singapore conference reflects a fundamental shift in the risk environment.
Interconnected risks demand broader perspective
Natividad highlighted the interconnected nature of modern risks. This, she argues, requires a shift in focus from identifying individual risks to understanding their complex relationships.
For instance, a geopolitical event can impact energy prices, freight costs, and commodity prices, ultimately affecting a company’s profitability. Natividad emphasizes the need to ask not just “What can go wrong?” but also “What could this trigger, and what decisions do we need to make?”
Shaping the risk environment, not just reacting to it
Natividad stresses that businesses are not passive observers in this new risk order. Every conversation with boards, every risk brought to management’s attention, and every decision made contributes to the evolving risk environment.
This proactive stance is reflected in the conference’s agenda, which focuses on key areas like geopolitics, boardroom discipline, and economic fragmentation. Sessions will look into the implications of global events on supply chains, commodity costs, and business continuity across Asia.
Analytics and technology take center stage
The convergence of risks and the role of analytics in building resilience will be another major talking point. Natividad highlights the need to move beyond discussing risks like cyber, climate, and supply chain in isolation. “They reinforce one another,” she said, emphasizing the importance of “connecting the dots earlier” through data-driven insights.
Emerging technologies like AI and their impact on risk management will also be addressed. Sessions will explore AI governance, cyber resilience, and the risks associated with data centers.
The conference will also tackle the evolving nature of work and its impact on risk.
Nurturing future leaders and alternative risk transfer
The conference emphasizes developing future risk leaders and exploring alternative risk transfer methods. It features initiatives like the ‘Next-Gen Risk Takers Challenge’ to recognize young talent. Discussions focus on connecting early insights to improve decision-making before crises occur, including the role of captive models in risk management.
