EXPLAINED Guide: Risk and managing risk
Overview
The concept of risk management has been of increasing relevance and importance in recent years, triggered in part by the greater maturity of corporate governance frameworks and recognition of risk management as an enabler and protector of value and achievement of strategic objectives.
Societal trends such as business accountability, disclosure of information, the velocity of change, the connectivity of risks, the impact of emerging technologies and high impact, low probability risk have all added emphasis and importance to the need for effective risk management.
According to the 2024 World Economic Forum Global Risk Report, the disruptive capabilities of manipulated information are rapidly accelerating, as open access to increasingly sophisticated technologies including artificial intelligence (AI) proliferates and trust in information and institutions deteriorates. It is anticipated that the boom in synthetic content will amplify societal divisions, with rises in ideological violence and political repression.
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