In this article from the 2024 Energy Market Review discover how emerging risks are reshaping the energy landscape.
Given the amount of disruption and change over the last few years, energy leaders are paying renewed attention to how they can identify emerging risks and explore how these not only impact on their risk framework, but also how they are related to expected growth and greater strategic focus over longer time horizons.
$110 trillion in capital investment will be required to achieve net-zero by 2050. This global goal is a shifting sea of change that covers macro risks as well as operational issues. With heightening geopolitical risk, and climate change amplifying diverse risk exposures, identifying, quantifying and mitigating emerging and interconnected risks is essential, yet challenging.
Global goal is a shifting sea of change that covers macro risks as well as operational issues.
It is imperative that risk leaders need to look beyond the short term, day-to-day risk exposures and examine this changing environment with a broader lens. Whilst many of the emerging risks we are facing, are not new, the landscape is rapidly evolving, and the biggest risk may be inaction.
Research suggests that future-prepared firms — who have invested in building corporate foresight units — outperform the average by a 33% higher profitability and by a 200% higher growth. Organizations of all sizes can learn from the approaches taken to improve their organizational agility and resilience through appropriately scaled management of emerging risks.
That starts with risk identification and accessing views that will challenge your thinking. We asked our WTW Research Network to give us their thoughts on key emerging trends they feel the energy industry should be considering.
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