IRMI 2025 is a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC). It is a collaborative research project involving over 700 thought leaders in the risk management and insurance industries. The survey’s findings provide valuable insights into the challenges and opportunities facing the industry over the next decade.
IRMI 2025 identified several key trends that are expected to shape the future of risk management. These trends include the increasing use of data and analytics, the rise of new technologies, and the changing nature of work. The survey also found that risk managers are increasingly focused on enterprise risk management and are looking for ways to better align risk management with their organization’s strategic objectives.
The findings of IRMI 2025 are essential reading for anyone involved in risk management or insurance. The survey provides valuable insights into the future of the industry and helps risk managers to prepare for the challenges and opportunities that lie ahead.
1. Data and analytics
According to IRMI 2025, the increasing use of data and analytics is expected to have a major impact on risk management. Risk managers will be able to use data to better identify, assess, and mitigate risks. This is due to the fact that data and analytics can provide risk managers with a more comprehensive view of their organization’s risk profile.
- Improved risk identification: Data and analytics can help risk managers to identify risks that they may not have been aware of before. This is because data and analytics can be used to identify patterns and trends that may not be visible to the naked eye.
- More accurate risk assessment: Data and analytics can help risk managers to more accurately assess the likelihood and impact of risks. This is because data and analytics can be used to quantify risks and to develop predictive models.
- Better risk mitigation: Data and analytics can help risk managers to develop more effective risk mitigation strategies. This is because data and analytics can be used to identify the most effective risk mitigation strategies and to track the effectiveness of these strategies.
- Improved decision-making: Data and analytics can help risk managers to make better decisions. This is because data and analytics can provide risk managers with the information they need to make informed decisions.
Overall, the increasing use of data and analytics is expected to have a major impact on risk management. Risk managers will be able to use data and analytics to better identify, assess, and mitigate risks. This will lead to improved risk management decision-making and better outcomes for organizations.
2. Technology
The rise of new technologies, such as artificial intelligence (AI) and machine learning (ML), is expected to have a significant impact on risk management. These technologies can be used to automate tasks, improve decision-making, and provide new insights into risks.IRMI 2025, a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC), identified the rise of new technologies as one of the key trends that will shape the future of risk management. The survey found that risk managers are increasingly looking to new technologies to help them with a variety of tasks, including:
- Automating tasks: AI and ML can be used to automate a variety of tasks that are currently performed manually by risk managers. This can free up risk managers to focus on more strategic tasks.
- Improving decision-making: AI and ML can be used to improve decision-making by providing risk managers with more accurate and timely information. This can help risk managers to make better decisions about how to allocate resources and mitigate risks.
- Providing new insights into risks: AI and ML can be used to identify patterns and trends in data that may not be visible to the naked eye. This can help risk managers to identify new risks and to develop more effective risk mitigation strategies.
The use of new technologies is already having a significant impact on risk management. For example, some insurance companies are using AI to develop new underwriting models that can more accurately assess the risk of different customers. Other companies are using ML to identify patterns of fraud and abuse.As new technologies continue to develop, they are expected to have an even greater impact on risk management. Risk managers who are able to adopt these technologies will be well-positioned to succeed in the future.
3. Enterprise risk management
IRMI 2025, a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC), identified enterprise risk management as one of the key trends that will shape the future of risk management. The survey found that risk managers are increasingly focused on enterprise risk management because it helps organizations to better understand and manage their overall risk profile.
- Improved risk identification: Enterprise risk management helps organizations to identify risks that they may not have been aware of before. This is because enterprise risk management takes a holistic view of all the risks facing an organization, including risks from internal and external sources.
- More accurate risk assessment: Enterprise risk management helps organizations to more accurately assess the likelihood and impact of risks. This is because enterprise risk management uses a variety of tools and techniques to assess risks, including data analysis, scenario planning, and expert judgment.
- Better risk mitigation: Enterprise risk management helps organizations to develop more effective risk mitigation strategies. This is because enterprise risk management takes a proactive approach to risk management, which involves identifying and mitigating risks before they can cause harm.
- Improved decision-making: Enterprise risk management helps organizations to make better decisions. This is because enterprise risk management provides organizations with a comprehensive view of their risk profile, which allows them to make informed decisions about how to allocate resources and mitigate risks.
Overall, enterprise risk management is an important trend that is shaping the future of risk management. IRMI 2025 found that risk managers are increasingly focused on enterprise risk management because it helps organizations to better understand and manage their overall risk profile. Organizations that adopt enterprise risk management will be better positioned to succeed in the future.
4. Strategic alignment
Strategic alignment is an important aspect of IRMI 2025 because it helps to ensure that risk management is supporting the organization’s overall goals. IRMI 2025 is a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC). The survey found that risk managers are increasingly focused on strategic alignment because it helps organizations to better achieve their objectives.
There are a number of benefits to strategic alignment. First, it helps organizations to identify and prioritize the risks that are most important to their business. Second, it helps organizations to develop risk management strategies that are aligned with their overall business goals. Third, it helps organizations to communicate the importance of risk management to senior management and stakeholders.
There are a number of ways to achieve strategic alignment. One way is to develop a risk management framework that is linked to the organization’s strategic plan. Another way is to involve senior management in the risk management process. Finally, it is important to communicate the importance of risk management to all employees.
Strategic alignment is an important trend that is shaping the future of risk management. IRMI 2025 found that risk managers are increasingly focused on strategic alignment because it helps organizations to better achieve their objectives. Organizations that adopt strategic alignment will be better positioned to succeed in the future.
5. Cybersecurity
IRMI 2025, a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC), identified cybersecurity as one of the key trends that will shape the future of risk management.
- Increased reliance on technology: Organizations are increasingly reliant on technology, which has created new opportunities for cybercriminals. Risk managers need to be aware of the latest cybersecurity threats and develop strategies to protect their organizations from these threats.
- Evolving nature of cyber threats: Cyber threats are constantly evolving, which makes it difficult for organizations to stay ahead of the curve. Risk managers need to be aware of the latest cybersecurity trends and develop strategies to protect their organizations from emerging threats.
- Financial impact of cyber attacks: Cyber attacks can have a significant financial impact on organizations. Risk managers need to be aware of the potential financial impact of cyber attacks and develop strategies to mitigate these risks.
- Reputational damage: Cyber attacks can also damage an organization’s reputation. Risk managers need to be aware of the potential reputational impact of cyber attacks and develop strategies to protect their organizations from reputational damage.
Cybersecurity is a complex and challenging issue, but it is one that risk managers need to take seriously. By understanding the latest cybersecurity threats and developing effective cybersecurity strategies, risk managers can help to protect their organizations from the growing threat of cyber attacks.
6. Climate change
Climate change poses significant risks to organizations of all sizes. IRMI 2025, a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC), identified climate change as one of the key trends that will shape the future of risk management.
- Physical risks: Climate change can lead to a variety of physical risks, such as extreme weather events, sea level rise, and changes in temperature and precipitation. These risks can damage property, disrupt operations, and cause supply chain disruptions.
- Transition risks: Climate change can also lead to transition risks, such as changes in government regulations, consumer preferences, and market conditions. These risks can impact an organization’s financial performance and its ability to operate.
- Reputational risks: Climate change can also damage an organization’s reputation. Organizations that are seen as not taking climate change seriously may face backlash from customers, investors, and other stakeholders.
- Legal risks: Climate change can also lead to legal risks. Organizations may be held liable for climate change-related damages, such as property damage or personal injury.
Climate change is a complex and challenging issue, but it is one that risk managers need to take seriously. By understanding the potential risks of climate change and developing effective climate change strategies, risk managers can help to protect their organizations from the growing threat of climate change.
7. Globalization
IRMI 2025, a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC), identified globalization as one of the key trends that will shape the future of risk management. IRMI 2025 found that globalization is increasing the interconnectedness of the world, which is creating new risks for organizations. These risks include:
- Supply chain disruptions: Globalization has led to increasingly complex and interconnected supply chains. This can make organizations more vulnerable to supply chain disruptions, which can cause delays, cost overruns, and reputational damage.
- Cybersecurity risks: Globalization has also led to an increase in cybersecurity risks. Cybercriminals can now target organizations anywhere in the world, and they can use the interconnectedness of the global economy to launch attacks.
- Political risks: Globalization has increased the interconnectedness of the world’s economies, which has made organizations more vulnerable to political risks. Political instability, trade wars, and changes in government regulations can all have a negative impact on organizations.
- Environmental risks: Globalization has also led to an increase in environmental risks. Climate change, pollution, and natural disasters can all have a negative impact on organizations.
Risk managers need to be aware of these global risks and develop strategies to manage them. This may involve diversifying supply chains, investing in cybersecurity, and developing contingency plans for political and environmental risks. Globalization is a complex and challenging issue, but it is one that risk managers need to take seriously. By understanding the global risks that their organizations face and developing effective global risk management strategies, risk managers can help to protect their organizations from the growing threat of global risks.
For example, a recent study by the World Economic Forum found that global risks are becoming increasingly interconnected. The study found that the top five global risks in 2023 are all interconnected and can have a cascading effect on organizations. These risks include:
- Climate change
- Extreme weather events
- Natural disasters
- Cyberattacks
- Geopolitical instability
The study found that these risks are all interconnected and can have a significant impact on organizations. For example, climate change can lead to extreme weather events, which can cause natural disasters. Natural disasters can damage property and disrupt supply chains, which can lead to cyberattacks. Cyberattacks can also disrupt supply chains and cause geopolitical instability.
Risk managers need to be aware of the interconnectedness of global risks and develop strategies to manage these risks. This may involve investing in resilience, diversifying supply chains, and developing contingency plans. By understanding the global risks that their organizations face and developing effective global risk management strategies, risk managers can help to protect their organizations from the growing threat of global risks.
8. Regulation
The regulatory landscape is constantly changing, and this can create new risks for organizations. IRMI 2025, a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC), identified regulation as one of the key trends that will shape the future of risk management. IRMI 2025 found that risk managers are increasingly focused on regulation because it can have a significant impact on their organizations.
There are a number of reasons why regulation is becoming increasingly important for risk managers. First, the regulatory landscape is becoming more complex. This is due to a number of factors, including the increasing globalization of business, the rise of new technologies, and the growing awareness of environmental and social issues.
Second, regulators are becoming more active in enforcing regulations. This is due to a number of factors, including the increasing public demand for accountability, the rise of shareholder activism, and the growing complexity of the regulatory landscape.
Third, the penalties for non-compliance are becoming more severe. This is due to a number of factors, including the increasing public demand for accountability, the rise of shareholder activism, and the growing complexity of the regulatory landscape.
As a result of these factors, risk managers need to be more aware of the latest regulatory changes and develop strategies to comply with these changes. Failure to comply with regulations can have a significant impact on an organization, including financial penalties, reputational damage, and even criminal prosecution.
There are a number of things that risk managers can do to stay up-to-date on the latest regulatory changes. First, they can subscribe to regulatory newsletters and updates. Second, they can attend conferences and seminars on regulatory compliance. Third, they can hire consultants who specialize in regulatory compliance.
Risk managers can also develop strategies to comply with regulatory changes. These strategies may include developing compliance programs, conducting risk assessments, and implementing internal controls.
By staying up-to-date on the latest regulatory changes and developing strategies to comply with these changes, risk managers can help to protect their organizations from the risks associated with regulation.
9. Talent
The IRMI 2025 report highlights the importance of talent management in the risk management profession. As the risk landscape becomes increasingly complex, organizations need to attract and retain qualified risk management professionals to manage these risks effectively.
- Talent Shortage: The demand for qualified risk management professionals is growing, but there is a shortage of qualified candidates. This shortage is due to several factors, including the increasing complexity of the risk landscape, the growing awareness of the importance of risk management, and the lack of qualified risk management programs at universities.
- Competition for Talent: Organizations are competing for a limited pool of qualified risk management professionals. This competition is driving up salaries and benefits for risk management professionals.
- Need for Specialized Skills: Risk management is a specialized field that requires a unique combination of skills and knowledge. Organizations need to develop strategies to attract and retain risk management professionals with the specialized skills and knowledge that they need.
- Importance of Diversity: A diverse workforce is essential for effective risk management. Organizations need to develop strategies to attract and retain risk management professionals from a variety of backgrounds and experiences.
Organizations that are able to attract and retain qualified risk management professionals will be better positioned to manage the risks that they face. IRMI 2025 provides several recommendations for organizations on how to attract and retain the best talent. These recommendations include:
- Developing a talent management strategy
- Investing in training and development
- Creating a positive work environment
- Offering competitive salaries and benefits
- Promoting diversity and inclusion
By following these recommendations, organizations can improve their ability to attract and retain the best risk management talent.
FAQs about IRMI 2025
The following are answers to some frequently asked questions (FAQs) about IRMI 2025, a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC):
Question 1: What is IRMI 2025?
IRMI 2025 is a collaborative research project involving over 700 thought leaders in the risk management and insurance industry.
Question 2: What are the key findings of IRMI 2025?
IRMI 2025 identified several key trends that are expected to shape the future of risk management, including:
- Increasing use of data and analytics
- Rise of new technologies
- Changing nature of work
- Increasing focus on enterprise risk management
- Growing importance of strategic alignment
- Heightened concern about cybersecurity
- Growing awareness of climate change
- Increasing interconnectedness of the world
- Changing regulatory landscape
- Challenge of attracting and retaining qualified risk management professionals
Question 3: What are the implications of the findings of IRMI 2025?
The findings of IRMI 2025 have important implications for the future of risk management. Risk managers need to be aware of these trends and develop strategies to address them.
Question 4: How can risk managers use the findings of IRMI 2025 to improve their risk management programs?
Risk managers can use the findings of IRMI 2025 to improve their risk management programs by:
- Using data and analytics to better identify, assess, and mitigate risks.
- Adopting new technologies to automate tasks, improve decision-making, and provide new insights into risks.
- Focusing on enterprise risk management to take a holistic view of all the risks facing an organization.
- Aligning risk management with the organization’s strategic objectives.
- Addressing cybersecurity concerns.
- Considering the impact of climate change.
- Managing global risks.
- Keeping up with the changing regulatory landscape.
- Attracting and retaining qualified risk management professionals.
Question 5: What are the challenges facing risk managers in the future?
Risk managers face a number of challenges in the future, including:
- The increasing complexity of the risk landscape
- The rapid pace of technological change
- The growing interconnectedness of the world
- The challenge of attracting and retaining qualified risk management professionals
Question 6: What are the opportunities for risk managers in the future?
Despite the challenges, there are also a number of opportunities for risk managers in the future. These opportunities include:
- The increasing use of data and analytics
- The rise of new technologies
- The growing importance of risk management
- The opportunity to make a real difference in the world
By understanding the challenges and opportunities facing risk managers in the future, organizations can better prepare for the future and achieve their objectives.
To learn more about IRMI 2025, please visit the IRC website.
Risk Management Tips from IRMI 2025
The IRMI 2025 report provides valuable insights into the future of risk management. By following these tips, organizations can improve their risk management programs and better prepare for the future.
Tip 1: Use data and analytics to identify, assess, and mitigate risks.
Data and analytics can provide risk managers with a more comprehensive view of their organization’s risk profile. This information can be used to identify new risks, assess the likelihood and impact of risks, and develop more effective risk mitigation strategies.
Tip 2: Adopt new technologies to automate tasks, improve decision-making, and provide new insights into risks.
New technologies, such as artificial intelligence and machine learning, can be used to automate tasks, improve decision-making, and provide new insights into risks. By adopting these technologies, risk managers can improve the efficiency and effectiveness of their risk management programs.
Tip 3: Focus on enterprise risk management to take a holistic view of all the risks facing an organization.
Enterprise risk management takes a holistic view of all the risks facing an organization. This approach helps organizations to better understand and manage their overall risk profile.
Tip 4: Align risk management with the organization’s strategic objectives.
Risk management should be aligned with the organization’s strategic objectives. This ensures that risk management is supporting the organization’s overall goals.
Tip 5: Address cybersecurity concerns.
Cybersecurity is a growing concern for organizations of all sizes. Risk managers need to be aware of the latest cybersecurity threats and develop strategies to protect their organizations from these threats.
Tip 6: Consider the impact of climate change.
Climate change is a major risk that organizations need to be aware of. Risk managers need to assess the potential impact of climate change on their organizations and develop strategies to mitigate these risks.
Tip 7: Manage global risks.
Globalization is increasing the interconnectedness of the world. This creates new risks for organizations. Risk managers need to be aware of these global risks and develop strategies to manage them.
Tip 8: Keep up with the changing regulatory landscape.
The regulatory landscape is constantly changing. Risk managers need to be aware of the latest regulatory changes and develop strategies to comply with these changes.
Tip 9: Attract and retain qualified risk management professionals.
Attracting and retaining qualified risk management professionals is a challenge for many organizations. Risk managers need to develop strategies to attract and retain the best talent.
By following these tips, organizations can improve their risk management programs and better prepare for the future.
Conclusion
IRMI 2025 is a comprehensive survey of the future of risk management conducted by the Insurance Research Council (IRC). The survey’s findings provide valuable insights into the challenges and opportunities facing the industry over the next decade. Risk managers who are aware of these trends and develop strategies to address them will be better positioned to help their organizations succeed in the future.
Some of the key trends identified by IRMI 2025 include the increasing use of data and analytics, the rise of new technologies, the changing nature of work, the increasing focus on enterprise risk management, and the growing importance of strategic alignment. Risk managers need to be aware of these trends and develop strategies to address them. By doing so, they can help their organizations to better identify, assess, and mitigate risks.
IRMI 2025 also highlights the importance of attracting and retaining qualified risk management professionals. Risk managers play a vital role in helping organizations to manage risks and achieve their objectives. By investing in their risk management programs and attracting and retaining the best talent, organizations can better prepare for the future and achieve their goals.
