Risk forecasting will become increasingly difficult as established threats intersect with emerging ones, according to a new report from Marsh.

The Excellence in Risk Management report says the interconnected dynamics of geopolitics, technological advances, global economic integration, social instability and climate change mean manifestation of one risk is now more likely to influence others.

“The combination may exacerbate volatility and create new vulnerabilities with the potential to significantly damage organisations that have not prepared for the convergence of the old and the emerging.”

Organisations need to foster broad collaboration from within, the global broker says.

“Tackling emerging risks often requires creative but pragmatic approaches that encompass cross-functional support across the organisation and senior-leader engagement.”

The report recommends risk committees meet regularly and that management ensure committees are aware of broader trends and potential risks in governance frameworks.

Companies should not rely purely on claims data and internal sources to understand emerging risks, but use a broad array of sources and seek external voices to “challenge conventional thinking in your organisation”.

“Although there will be trusted people with valuable perspectives in your company, an outsider’s view can help link unseen issues to create broader, more robust conversations around emerging risks,” the report says.

Other recommendations include using data and analytics to identify, assess and manage emerging risks, and monitoring social media to identify threats.