Technology and artificial intelligence dominate emerging risk concerns for Asia-Pacific businesses, while supply chain worries feature prominently, a WTW report published today finds.

The report also highlights risk leaders’ concerns over resilience, with only three in 10 key decision-makers and the teams supporting them believing their organisations can respond adequately to risks that might emerge in the next 10 years.

The Emerging and Interconnected Risks Survey asked respondents to consider the impact on their organisation of current emerging risks and those emerging over the next two and 10 years. They were also asked to consider risks’ interconnectivity.

WTW Asia head of corporate risk and broking Luke Ware says emerging risks are complex and carry unseen costs if they are ignored.  

“We are witnessing a continual evolution of threats, which means we need a smarter way to think about risk,” he said. “What is certain is that none of the risks operate in isolation and organisations need to move away from a siloed approach to risk and rethink the narrative around risk.”

The global survey assesses risks identified by more than 330 respondents from 55 countries and puts forward practical recommendations. More than 120 respondents came from the Asia-Pacific region, representing organisations employing an estimated 581,000 people. 

Broker WTW says while AI and technology are expected to be the greatest drivers of change in the next 10 years, cyber risks and the future of technology are the top threats of today and tomorrow for organisations in the region, and the joint top interconnected risk alongside the economic outlook.

Geopolitical uncertainties have led to supply chains being the second most mentioned source of emerging risk over the next two years. Some 53% of respondents in the region expect climate change and climate transition risks to be a key issue.

Globally, the survey finds AI is the top emerging risk of today, followed by cyber and geopolitical risks.

“AI was recognised as a significant driver of innovation and automation, helping companies remain competitive. However, its adoption in financial markets and other sectors was seen as a double-edged sword,” the report says.

“The potential for AI to assist in spreading misinformation and the need for internal policies to manage these risks are also emphasised.”

Looking over the next two years, AI was linked to cybersecurity, governance, business disruption and ethics risks.