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At the same time 1.4m people are migrating to cities every day, and there were 50% more displaced individuals last year than during the whole of World War Two. Urbanisation will inevitably lead to overcrowding, homelessness, disease, and once again crime in our towns. Water shortage, an issue we wouldn’t particularly identify with at home, is one of the top 3 Global concerns for businesses and Authorities. As a result, Vegas will be history in less than 15 years unless they can ﬁnd an intelligent and sustainable alternative. Better living standards and ﬁscal changes elsewhere are tempting skilled UK workers to migrate overseas. And as technology advances, it is estimated that 5m traditional jobs will be taken away in the UK over the next 30 years. This will leave many companies struggling to ﬁnd skilled staff. Emerging technologies bring all sorts of new risks that we’d never considered before, drones and driverless cars are examples of risks that companies, and risk managers are trying to comprehend. Being prepared Planning for risk is paramount to an organisation’s long term success. It is critical to understand a company’s priorities and strategy. 20 years ago, for example, intangible assets represented 20% of the FTSE 100 companies’ balance sheets. Now it’s at 80% and the focus is much more towards managing risks that directly or indirectly affect brand and reputation. A recent EY study demonstrates that the top 20% of well risk managed companies perform 3 times better on EBITDA than the bottom 20%. Interestingly its research also revealed that 82% of institutional investors would pay a premium for strong risk managed businesses. External risks Internal risks • • • • • • • • • • • • • • • • • • • Regulation Competition Economic environment Oil price shocks Government policy making Natural disaster Pandemics Terrorism Malicious damage Theft Cyber attacks Interest rates Employee injury Fire Oil spills System failures Employee fraud Data leakage Talent retention Driving change 60% of Global spending is through the Private Sector so why should we assume that Government has sole responsibility? The bottom line is that we all have a duty to drive change. This year, the Paris Summit on Climate Change was a profound move in the right direction, with business leaders making a critical contribution to the agreement. The key to change, however begins with awareness of our surroundings, and secondly that we have a broader responsibility to society than simply our company’s bottom line. KITPLUS - THE TV-BAY MAGAZINE: ISSUE 112 APRIL 2016 | 43