Each and every year, various institutions and organizations including International Risk Governance Council (IRGC), research divisions at Swiss Re, AXA and other industry leading companies, conduct surveys, collect feedbacks, and publish reports on the emerging highest potential risks including their identification and assessment accounts. Some of these institutions offer a general framework for managing such risks. IRC has also studied some of these reports and published their major findings and achievements with the aim of promoting the concept of the emerging risks and their management.
Recently released by IRC, the research report titled “Examination of the Global Emerging Risk Management Frameworks” comprises of two major sections. The first section deals with the concept of the emerging risk, the challenges of the industries including the insurance industry, and a brief account of how to manage such risks. The second section of the report includes a set of studies conducted by the Property and Liability Insurance Research Group of IRC with the leadership of Dr. Maryam Ethna Ashari, Research Fellow of IRC.
The research report attempts to present the challenges that managing the emerging risks will probably encounter. These challenges are derived from the experiences of various organizations when developing and implementing their emerging risk management plans. Finally, the report ends with the roadmap recommended by IRGC for the public sector in order to better deal with such risks.
Based on the findings of the research report, the following are the major success factors in managing emerging risks by the public sector and other institutions: promoting transparency in public goals and instruments in fighting against uncertainty and emerging issues, assigning roles and responsibilities, involving all the beneficiaries in the process of assessment and decision-making, accumulating various risks and their creating elements, preparing and employing appropriate procedures in assessing threats and planning properly in case of facing them, prioritizing uncertainty and potential opportunities and threats, setting an appropriate time for action, agility, innovation, and creativity in order to ensure flexibility and adaptability based on the required conditions, setting the stage for constructive dialog about risks.
According to the research report, it is recommended that the regulator and the board of directors always critically examine the information they receive from the middle management in order to better understand the industry, their company, and the financial system. It is also suggested that an industry wide annual report must be prepared that presents the condition of the country’s emerging risks using the recommended framework, assigned roles, and duties by IRGC.
Those interested to access and download the Persian full text of the aforementioned research report, please visit the following web address: https://www.irc.ac.ir/fa-IR/Irc/4946/Articles/view/14643/1596.