Business leaders should view risk as a route to prosperity, according to Aon President and CEO Greg Case.

“The desire to take on risk and the ability to understand risk is a fundamental driver to growth in our global economy,” he said in a speech to the Detroit Economic Club last week.

“Misunderstanding it can be fatal… the successful firms will be the ones that understand that risk is married to innovation, exploration and expansion.

“They will be the ones that understand that proper risk management provides an opportunity to grow and prosper.”

Its April risk management survey found only 59% of companies were ready to face major risks, down from 66% two years earlier.

This may be because the prolonged economic recovery has strained organisations’ resources, or because risk has been consistently hard to address, Mr Case says.

Under-rated risks include cyber attacks, kidnappings and global pandemics.

Although globalisation has helped industries become more efficient, one broken link in a supply chain can have a material impact on a company’s growth, Mr Case says.

Insurance is vital, but risk assessment and advance protection is necessary.

“Understanding how to measure and mitigate risk means using all of the information, technology and expertise at one’s disposal.”

Aon has built the Global Risk Insight Platform, which monitors emerging risks based on data from more than 1000 insurance carriers in 169 countries.

Mr Case also discussed “people issues” such as ageing populations at the meeting.

Aon helped General Motors manage its pension program to provide flexibility and security for retirees, and help the company shift liabilities off its balance sheet, he says.

It also launched a healthcare exchange that helps employees select health benefits.