Only 44 percent of captive executives think that damage reputation is a significant business risk, according to global risk management firm Aon.
Aon took the data from The Underrated Threats Report 2015, a web-based survey issued to executive and non-executive directors of captive insurance companies to provide feedback on key issues raised connected to the findings first published on the Aon Global Risk Management Survey 2015.
The survey found that many believe “business is complacent about brand and reputation believing it to be ‘out of sight and mind’ before a crisis occurs.”
Rory Moloney, chief executive officer (CEO) of Aon Global Risk Consulting, said: “Damage to brand and reputation can become a significant business risk. The speed of technological advancement, coupled with societal, economic and political changes means that reputational damage is an increasing concern. This report analyses the responses of senior executives in large organisations with key captives to understand their concerns and needs.”
As well as brand damage, the survey also looked Cyber risk, with 78 percent of respondents claiming the risk readiness level for cyber risk has, or may have been, vastly overstated.
Also covered was risk connectivity - the speed at which mobile technology is changing is creating a rapidly expanding network of new connections between individuals, groups and companies. Results showed 80 percent of respondents believe that the interconnectivity of risk is still not widely understood.
Political risk was also viewed as a significant threat, with 63 percent of respondents saying political risk had been seriously underrated.
The ongoing uncertainty across the Eurozone and various geopolitical conflicts was of serious concern, particularly to EMEA respondents.
Stephen Cross, chief innovation officer, Aon Risk Solutions said: “The current world of risk is predictably unpredictable. The interconnectivity of traditional and emerging risks means organisations can no longer evaluate individual risks in isolation but must look at all the top risks and people in a more holistic way.
"Aon’s role as advisers on the topic of risk is to constantly explore, assess and express a point of view on the impact of these forces and what may lie over tomorrow’s horizon.”