Aon and The Economist recently published an article about how business leaders can address emerging risks and invest in preparedness—while simultaneously finding opportunities for growth. “The COVID-19 pandemic has fundamentally changed the CEO agenda and the way organizations around the world look at risk,” says Aon CEO Greg Case. "We are dealing with unprecedented volatility, where risks are more frequent, severe and interconnected so the world needs to be better prepared."
Traditional backward-looking modeling is not sufficient to tackle the increasing complexity of risk. The necessity for innovation among those who assess risk and help protect against it is clear. “Risk has traditionally been assessed in the rear-view mirror, by looking at historical loss profiles,” says Case. “But you can’t do that with cyber threats, intellectual property or climate risks. These are risks with limited historical data.”
Risk assessment needs to be future-focused, and Case says that the application of artificial intelligence (AI) and predictive analytics is important to how Aon delivers information, insights and solutions to help clients make better decisions. “We have analytics that are forward-looking so we can deliver enhanced and net new solutions for our clients. That’s what we are doing at Aon because that is what our clients need.”
You can read the full article in The Economist.