Podcast 34 mins
On Aon’s Better Being Series: The World Wellbeing MovementA Year of Better Decisions in Risk Capital and Human Capital
Organizations faced complex challenges in risk capital and human capital throughout 2023, prompting leaders to turn to new ways of doing business.
Key Takeaways
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Facing global economic volatility and changes to the future of work, organizations are seeking ways to navigate ongoing, interconnected risks.
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Managing risk capital considerations in areas such as sustainability, climate resilience and cyber security requires an integrated approach to decision making.
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Leaders are using workplace data and new talent strategies to address today’s human capital needs.
Overview
In 2023, major environmental, technological and economic changes created a global climate of ongoing, interconnected threats. Meanwhile, shifting employee priorities and the aftereffects of the COVID-19 pandemic have altered workplaces around the world. To effectively address these challenges, organizations turned to new strategies in risk capital and human capital.
Data and analytics, improvements in cyber health and new perspectives on workplace culture are giving leaders the tools to make better decisions for organizational resilience and success. The following six articles from the past year illustrate some of the ways businesses are managing risks and finding opportunities to adapt, improve and thrive.
Innovation in Food and Agriculture
The food industry is exploring new ways to meet the needs of a growing global population, respond to consumer expectations and adopt more sustainable practices. But climate change, reputation risk and a shifting regulatory environment are putting pressure on a complex value chain. “Progress has been informed by a mix of technology and innovation working together, but the fragmentation in the food and beverage industry makes risks and business decisions difficult,” says Ciara Jackson, Aon’s global Food, Agribusiness and Beverage Practice leader.
It’s becoming increasingly important to think of ways to combine risk, engineering and finance acumen and to work collaboratively across public and private sectors to create more bankable projects, optimizing risk transfer.
How Climate Data Can Limit Business Risks
Natural disasters caused $313 billion in global economic losses in 2022; less than half of those losses were insured. Using climate data to model weather-related risks could help businesses secure the right insurance solutions. Natalia Moudrak, North America Leader for Aon Climate, explains that analytics and data can inform the partnerships and strategies that protect business assets and build resilience. “It’s becoming increasingly important to think of ways to combine risk, engineering and finance acumen and to work collaboratively across public and private sectors to create more bankable projects, optimizing risk transfer as part of project financing solutions.”
Read the article to learn more.
Cyber Awareness for Resilient Organizations
Breaches in cyber security are costly and disruptive and affect the entire organization. While this threat is on the rise, however, CEOs often struggle to make decisions about the best ways to build cyber resilience within their organizations. A look at cyber health in finance and insurance, healthcare and manufacturing reveals where some sectors are improving in terms of multifactor authentication, data-backup strategies and other risk areas — and the actions leaders can take to build organization-wide cyber maturity.
It’s not just about problem solving issues for now. It’s about looking ahead and challenging people to discover new and better ways to do things.
New Management Styles for a New World of Work
Hybrid work environments, an uncertain talent market and an increasing focus on employee wellbeing are changing workplace dynamics and creating new priorities for managers. To position these leaders for success, organizations must take a future-focused approach to technology, training and decision making. “It’s not just about problem solving issues for now,” explains Charlotte Schaller, partner and head of Aon Assessment Solutions UK. “It’s about looking ahead and challenging people to discover new and better ways to do things.”
Read the article to learn more.
Workplace Solutions for Employee Caregivers
Building a culture of wellbeing in the workplace means recognizing the needs of all employees, including those who are caregivers for family members. “Caregiving is not only a logistical challenge. It is also a physical, social, emotional and financial challenge,” explains Joana Coelho, senior associate of health solutions for the Europe, Middle East and Asia region at Aon. By reimagining benefits plans, developing flexible leave policies and offering critical resources, employers can support their talent and strengthen their organizations.
Read the article to learn more.
Data and the Future of Employer Health Plans
Employer medical plan cost increases are expected to rise by 10.1 percent in 2024, according to Aon’s 2024 Global Medical Trend Rates report. To respond to this trend, leaders must make important decisions about employee benefits and resources. Kathryn Davis, vice president, data and analytics leader for Health Solutions for Multinationals at Aon, explains that organizations will need to look at data to identify the risks, health conditions and other interconnected factors contributing to rising costs. “In the face of continued cost increases, employers are looking to adapt their medical benefits programs, what they cover and how they support employees,” Davis says.
General Disclaimer
This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.
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