Business risks show increasing interconnectedness in new reports

New research highlights an increasing interconnectedness of business risks, which allows contained shocks to ripple more rapidly through the global economy. A joint analysis by the Swiss Re Institute and LSE found a 24% increase in links between risks reported by 91 Fortune-100 companies since 2019, identifying artificial intelligence and supply chains as primary connection points.

In Europe, organizations are reportedly struggling to translate risk insights into concrete business actions. A survey by Marsh of 146 European organizations revealed a disconnect between risk management and business strategy. While AI and analytics are top priorities, 39% of respondents do not currently use these tools in risk management, and 32% use them only in limited areas.

Supply chain visibility also remains a challenge, with nearly 40% of surveyed firms having full visibility only of their direct suppliers. Furthermore, while many companies utilize scenario analysis and stress testing, only about one-third use those findings to adjust business decisions or confirm risk limits.