According to Allianz’s report in 2024, emerging risks could be in the form of AI, Environmental, Social and Governance (ESG) and a challenging economy.
The use of AI technology brings its own debate. Whether you use it or not, there’s no denying the usefulness it can provide. Especially as more and more businesses are adopting it. With any new technology, there are always concerns and as there should be. We do not know the full risks involved and with our personal data potentially being on the line – only time will tell. You can find out more about this here.
According to Allianz “There is also increased regulatory risk as rules around how this technology is utilised evolve. Likewise, GenAI brings a risk of legal action. This might be due to its inappropriate use, for instance unintended bias, or infringement of existing privacy and/or copyright laws.”
Attitudes towards ESG is not a new topic, but according to Allianz, we’re seeing more UK legal cases against companies who have failed to act on climate change. In 2023, ClientEarth had a case against Shell’s directors for alleged failure to properly manage climate risk. Larger companies already have mandatory responsibility in reporting their ESG findings, it’s looking likely that SME businesses will follow suit at some point.
If that’s the case, are you ready to report what your organisation does in regards to ESG?
There are always challenges present when it comes to the economy. 2024 saw geopolitical issues – from war disrupting supply chains and a record year for world elections including the UK – directors and officers have to be aware and prepared of any changes that could impact their organisations.
https://www.bbc.co.uk/news/business-13200758
https://www.allianz.co.uk/news-and-insight/insight-and-expertise/directors-and-officers-insurance-insights-2024.html
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