From the April/May 2012 issue of Treasury & Risk magazine

Volatility Tops List Of Risks

Failed and failing states comes places second in poll of risk managers.

Risk managers see financial volatility as the top emerging threat, according to the Society of Actuaries’ fifth annual survey.

The poll of 172 risk executives, conducted by Rudolph Financial Consulting, shows that 68% cited financial volatility as one of the top five emerging threats, while 42% selected failed and failing states and 38% cyber security and the interconnectedness of infrastructure. There was a three-way tie for fourth place, between a Chinese hard economic landing, an oil price shock and regional instability.

The survey was taken in October 2011, and Max Rudolph, CEO of Omaha, Neb.-based Rudolph Financial Consulting, suggests the votes for financial volatility reflect the European debt crisis, which dominated the news late last year. Rudolph sees the vote on failed and failing states as a reflection of the Arab Spring uprisings.

In the previous year’s survey, a fall in the value of the dollar was seen as the biggest emerging threat, cited by 49% of the risk managers.

This year’s survey suggests risk executives increasingly have input into strategic decisions, Rudolph notes, with 84% of the respondents saying that they have a seat at the table or input into corporate strategy.

 

 

Read more about the survey results here.

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