The international development of companies is also not without consequences on their exposure to regulatory risks and compliance risks. While highly regulated industries such as financial services and energy face extreme regulatory challenges, no company is immune to these risks. According to the Chub barometer, regulatory risks and compliance risks are indeed a concern for 32% of French business leaders. “As companies develop internationally, the legal and regulatory poses a major risk,” continues Nadia Cote.54% of the companies questioned believe that managers do not fully control the governance and compliance of all the countries in which they exercise responsibility. “Finally, French companies are also increasingly sensitive to geopolitical risks, risks of regime changes, property confiscations or protectionism. Regarding geopolitical risks, they are more concerned about the termination of operating licenses, concessions or contracts by foreign governments.
Risks related to human resources are developing
At the same time, companies are also increasingly concerned about “human” risks, including the risks to people, those caused by people, and the risks of talent. “Companies are paying more and more attention to protecting their employees from, for example, terrorist risks,” continues Nadia Cote. 84% of French companies surveyed in our barometer state that recent events (such as terrorist attacks, political violence, and pandemics) require them to review their travel and security policies. ” talent risk management is one of the best processes to mitigate this type of risk.
When risk becomes an opportunity to gain performance
Often apprehended in a defensive approach, risk management also serves the development and production of the company. According to an Ernst & Young study (conducted in 2012), 20% of the most mature risk management companies have indeed generated three times higher over the past five years than the 20% of the least sophisticated companies in this area. To achieve this, companies must nevertheless transform specific risks into opportunities.