For years, as many risk professionals need to understand emerging threats, they first search for top risk reports/surveys, of which there seems to be no shortage. As this previous article explains, reports like these are very “risk-centric” and provide little to no mention of opportunities. While they can be great conversation starters and contain good insights, companies need to be cautious in committing resources based on reports from the World Economic Forum, NC State, or elsewhere.
A better practice is to look at external trends, whether in your own industry, the geographic area(s) where your company operates, the broader economy, or even the society in general, and determine how they will impact the organization. Are these trends creating emerging situations? These situations could appear as either risks that need to be factored into planning or present as an opportunity to reach a goal or otherwise create a strategic advantage.
One such example of this in action is the increasing adoption of electric vehicles, or EVs. Tax incentives coupled with societal concerns about climate change and related government regulations, are seen as three major catalysts for this transformation in personal transportation.
Originally published in the journal Carrier Management, today’s article explores how the growing adoption of EVs impacts four different categories of risks (and opportunities!) in the auto insurance industry, specifically, strategic, operational, financial, and reputational.
Past guest articles for Carrier Management or the Demotech Difference have been illustrations of how ERM and strategy principles and practices apply in a specific industry. For those of you who are not in the insurance industry, this article should serve as a guide on how you can translate society trends into risks and opportunities for your company.
To read the article in its entirety, click the image or link below.
How are societal or other trends like EV adoption impacting your company? Has your company been able to harness these for a competitive advantage?
As always, we’re interested in hearing your thoughts and experiences, so please don’t hesitate to leave a comment below.
And if you’re wanting to better understand how new innovations or trends may affect your business, please don’t hesitate to reach out today to discuss your situation and how you can achieve your goals.
Featured image courtesy of Waldemar via Unsplash.com
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