What is Emerging Risk and Why is it Important?

Organizations leverage enterprise risk management (ERM) to identify, assess, and prioritize the most important risks to their strategy and profitability. Many of these top risks could potentially materialize at any point in the near future. In addition to identifying and assessing these near-term risks, organizations are well-served by looking further out into the future to find emerging trends that are worth watching closely. This article reviews findings on emerging risk from our recent Evolving Practices in Enterprise Risk Management study and provides examples of how two leading organizations identify and assess emerging risk.