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Aon-How HR Leaders Can Respond to Top Business Risks-Whitepaper

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3 Biggest Risks Impacting Human Capital 1 Introduction Consider that over the next decade, about half of the current S&P 500 companies won't be on the list. 1 Several companies and jobs in traditional industries such as media, manufacturing, and transportation (think Eastman Kodak, Blockbuster, taxi cabs, and travel agents) have already been replaced by technology and service companies (think Instagram, Netflix, Uber, and Expedia). The risks — and, therefore, the opportunities — of this kind of change run wide and deep for human capital leaders in businesses of every size and in every industry. Aon's 2019 Global Risk Management Survey, 2 in fact, concluded: It's troubling that many organizations report they may be less prepared than they have ever been to (respond to) a broad range of risks that threaten their ability to continue growing, protecting their brand, and serving clients and stakeholders." Many of those potential risks relate directly to the roles, responsibilities, and strategic leadership of HR leaders and practitioners — especially in an age that demands an increasing focus on finding opportunities for maximizing performance and managing volatility. All of which means HR leaders are perfectly positioned to help their organizations mitigate and manage many of the risks their companies are facing today. The Top 15 Risks • Economic slowdown or slow recovery • Damage to company reputation or brand • Accelerated rates of change in market factors • Business interruption • Increasing competition • Cyber attacks/data breaches • Cash flow/liquidity risk • Commodity price risk • Failure to innovate/meet customer needs • Regulatory/legislative changes • Failure to attract or retain top talent • Distribution or supply chain failure • Capital availability/credit risk • Disruptive technologies • Political risk and uncertainties e world of business is being disrupted in ways that were unimaginable even a few years ago. 1 Innosight. 2018 Corporate Longevity Forecast: Creative Destruction Is Accelerating. https://www.innosight.com/insight/creative-destruction/ 2 Aon. Global Risk Management Survey. 2019. https://www.aon.com/2019-top-global-risks-management-economics-geopolitics-brand-damage-insights/index.html

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