Overwatch has experience in managing Emerging Risks.
Emerging Risks are catastrophic and unforeseen in nature, and do not have a well developed risk management response strategy or plan. Some examples include:
- Pandemic (e.g., swine flu)
- Flood or Tsunami
- Volcanic Action
- Political Risk
EXAMPLE: January 2011 - Cairo, Egypt
Egypt's political unrest in 2011 shocked much of the world, but it wasn't a surprise to Egyptians. The government knew of a growing sense of unrest from the Egyptian people, particularly those in Cairo, frustrated with high unemployment, lack of opportunity and what some considered heavy-handed government and police policies.
Political unrest in neighboring Tunisia helped inspire the unrest in Egypt. It could be argued that if Tunisia had not experienced anti-government demonstrations widely covered by the news media that Egypt would not have become inspired to follow suit. Economists often describe this domino effect as the "Law of Unintended Consequences."
Political unrest and the accompanying financial losses (e.g., loss of international flights transiting Egypt, decline in tourism, decline in economic conditions) are hard to predict from a distance, but when they occur, they often quickly reach the level of force majeure events.
Much of our enterprise risk management consulting centers around Emerging Risks.
Some Emerging Risks can be insured against, but many may not have viable insurance solutions. Emerging Risks are part of your Cost of Risk (COR), but may be hard to enumerate because of its nature. Let Overwatch help.