Worldwide spread of the new coronavirus led the World Health Organization (WHO) to designate COVID-19 as a pandemic on March 11, 2020. Our organization’s … Digital and technological innovation has the potential to improve productivity, safety and environmental management in the mining industry. How are you going to build, recruit or borrow the right skills and capabilities across the organization? 3 | 20 key risks to consider by Internal Audit before 2020 2019 KPMG Advisory N.. Top 20 risks before 2020 3 14 8 11 19 5 7 4 9 10 15 18 6 13 20 1 2 16 12 17 Digitalization & the Internet of Things Cloud computing EU General Data Protection Regulation (EU-GDPR) Cyber security Business … UK Volatile markets, digital disruptions in the risk landscape, growing cyber-attacks, and the ever-escalating war for talent are just a few significant risk drivers on the minds of boards of directors and executives today, according to a comprehensive 113-page report, “Executive Perspectives … Regulatory changes and scrutiny may heighten, noticeably affecting the manner in which our products or services will be produced or delivered 2. The start of the new decade brings about a period of huge uncertainty for the UK, with its impending exit from the European Union and the potential economic fallout from such a move. Innovation could bring a much-needed step change to the mining sector. © 2020 EYGM Limited. What elevated levels of political risk mean for business in 2021. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. Energy becomes free, then what happens to copper? The economy was also the top risk condition for board members, CEOs, CFOs and CIOs, and made it to the top five list for all regions of the world we analyzed for 2020 except for North America. However, in our experience, these critical risks are often static and stay on the risk register in much the same “format” for many years. Source: EY survey over 130+ execs from the EY Global Mining & Metals sector. License to operate and disruption run through this year’s risks, as social responsibility and broader stakeholder demands intensify. Digital effectiveness remains in the top three risks and opportunities for miners and continues to be a topic executives want to discuss. James Stack, CEO of AGCS Australia, said: “Fuelled by rising temperatures and extreme dry weather attributed in part to climate change, these fires not only cause physical property damage, but also potential business interruption as the smoke causes hazardous air quality levels. Australia The burning platform for innovation is clear — some mining companies may need to innovate to survive, while others may be looking at embracing innovation to thrive in today’s fast-changing environment, and to improve return on capital. There is a massive technological breakthrough in the composition of plastic or other advanced materials — how does that affect demand for metals? 1 slot, with 44% of our business risks survey respondents1 putting it at the top of the list. Most mining companies can clearly state their critical risks and manage the visible, high-frequency risks in their business. Cyber replaces business interruption, which has moved down into second spot, and natural catastrophes remain in third place. Given the competitive market for digital and data-related skills, they might be hard to get into the mining sector, given the tarnished brand we have vs. other sectors. It’s worth noting that there are always opportunities in time of change. License to operate remains in the No. How will you equip future leaders with the skills needed to manage teams in a digital age? Top Risk Concerns for Business Leaders in 2020 Dec 18, 2019 Entering into a new decade, boards and C-suite leaders around the world are concerned with the escalating competition for specialized talent, … Experienced mining and metals leader. Most executives … COVID-19 and the great reset: Briefing note #28, October 21, 2020 Geopolitics is back. US: For US CEOs, a recession rose from being their 3rd biggest concern in 2019 to their top one in 2020… It’s more an opportunity than a risk now, and the one issue miners are challenged with is how to better manage data to extract value from it. The Top Risks This Year. Exploration spend has declined significantly and even though there has been some recovery in the last two years, budgets are still half of what they were in 2012.2. The 2020 Gartner Legal and Compliance Hot Spots report — based on interviews and survey data from legal, compliance and privacy executives — helps prepare legal leaders by identifying five risk … Bill Scaldaferri, CEO of AGCS North America said “its no surprise” cyber incidents have emerged as the top risk for US businesses in 2020. Leading mining companies are recognizing the importance of reducing their carbon emissions. In fact, the only change to our Top 5 Risks for 2020 is the order in which we rank them, with the political and economic impacts of the pandemic pushing the risks … The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. These risks are – Regulatory Risk … In fact, IA can play an important role in helping organizations manage the risk environment while ... Top 10 in 2020… The extended period of elections and resultant government changes has brought uncertainty to the political environment which has created volatility in the commodity markets. Global business environment slightly less risky in 2020. Should you be looking at benchmarking to work toward best practices as an industry? Talent and culture risks and technology and innovation risks dominate the top 10. EY | Assurance | Consulting | Strategy and Transactions | Tax. Strong governance program and a culture of accountability, Ramp up innovation to both find new resources and extract more value from current resources, Increased mining in remote and difficult locations, Access and cost of energy and infrastructure, Focus on sustainable cost reduction programs, Encourage innovation and partnerships to help with longer-term reduction of costs, Review capital tied up in high levels of pre-stripping, advance development and stockpiles, Consider the use of contract mining vs. sale or leaseback, Create strategic joint ventures to optimize economies of scale, Reduce costs from a support function — automation in the back office. You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. Companies are grappling with understanding what the workforce might look like in the future, and where they can attain these skills — build or buy? While application of technology has become business as usual, is anyone really doing it well? Trade wars, tariffs, economic sanctions and protectionism have companies concerned about the instability of future markets. Reflect on your risks like these flappers Corbis via Getty … Eurasia Group's Top risks For 2020 The time has come to update our Top Risks 2020, taking into account how the coronavirus has accelerated the trends that worry us most. Cyber incidents. Cyber incidents have been ranked as the top business risk in the USA for 2020. How will you retain senior employees to minimize the negative impact of attrition? The transition to a low-carbon economy is well underway and the pressure to accelerate this transition seems to grow every day. For the first time ever, Cyber incidents (39 percent of responses) ranks as the most important business risk globally in the ninth Allianz Risk Barometer 2020, relegating perennial top peril Business … Here are the top 10 cybersecurity threats businesses face in 2020… Survey reveals disconnect between agents and their clients, Expert on new entrants, reliance on the E&S space, and more, It will use the capital to grow headcount and launch new products, Global Risks Report 2020: Leading takeaways, WEF reveals the biggest long-term risks to the global economy, The telematics value proposition for commercial auto insureds, The changing landscape of the high net worth market, At-Bay raises $34 million in Series C round. Businesses across Africa are also increasingly concerned about business interruption as it has become the continent’s top risk in 2020 from 5th in 2019,” he said. For more information about our organization, please visit ey.com. Findings from the study illuminate two themes that dominate the top global risks in 2020: technology and innovation, and talent and culture. For many countries, concerns revolved around changes to legislation and regulation, but there was also a lot of worry worldwide about fire and explosion, and natural catastrophes. All Rights Reserved. The fluctuations in the risks, as well as new risks highlight the ongoing disruption in the sector. ... (CCPA) will take effect in January 2020… (39% of responses) Cyber risk tops the Allianz Risk Barometer for the first time with businesses facing a number of challenges ... 2. Business interruption. Mining companies will also need to re-evaluate their appetite for risk to ensure they are not missing out on new opportunities by taking a complacent or conservative approach to allocating capital. This is largely due to contributing factors such as Information Technology (IT)/Operational Technology (OT) convergence, Internet of Things (IOT) sensors, data analytics and optimization AI. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Cyber replaces business interruption, which has moved down into second spot, and natural catastrophes … EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Automation and increased maturity in the use of data is proving to have significant benefits to large mining operations, in terms of providing an uplift in productivity and hence reduction in production costs per tonne. Business leaders need to think through the implications. Make better risk management one of your 2020 business resolutions and help make this century’s 20s a better decade than the last. Risk management leaders say data privacy regulation is the top emerging business risk on their radar. According to the Allianz study, which focuses on large and small- to mid-sized enterprises in 22 industry sectors and 102 countries, cyber incidents (including cybercrime, IT failure/outage, data breaches, fines and penalties) were the top concern, followed by business interruption, changes in legislation and regulation, natural catastrophes, and market developments. Given that most cyber insurance is written in the US this risk will continue to influence the direction of our industry and encourage close portfolio reviews of silent exposures.”. Global Risks 2020: An Unsettled World; The Fraying Fundamentals; A Decade Left; Save the Axolotl; Wild Wide Web; False Positive; Methodology; Acknowledgements; Survey Results. The complete list of top business risks around the world in 2020, according to the Allianz Global Risk Barometer, is below: The threat landscape varies around the world. Survey respondents were asked to rate 30 different risks involving macroeconomic, strategic, and operational issues. It focuses on a range of issues, including digitalization, business resilience, organizational change, and geopolitical risks. Lower exploration budgets, fewer major discoveries and declining grades in existing deposits are particularly concerning when you consider that the outlook is for growing mineral demand as a result of the global growth and the demands of new world infrastructure. Other business risks to make the top 10 globally include: fire and explosion, climate change and the increasing volatility of weather, and macroeconomic developments. Every cybersecurity transformation should promote three key principles across culture, governance and capabilities: Exploration technologies have already made significant advances as miners explore new digital technologies. Will your digital investment strategy go from virtual to reality? Are you running an analogue supply chain for a digital economy? Cyberattacks have the potential to put you out of business, just like the current coronavirus pandemic is doing to businesses everywhere. The Global Risks Report, published by the World Economic Forum with support from Marsh & McLennan, provides a rich perspective on the major threats that may impact global prosperity in 2020 and over … Following are the top 10 risks identified in the “Executive Perspectives on Top Risks for 2020” report: 1. Top 10 business risks and opportunities – 2020 – Spanish (pdf) Download 2 MB For the third year in a row, there have been significant fluctuations in the risks, as well as new risks coming into the top … Knowing which risks to focus on is key, but so is understanding the implications and the right steps to take. While cyber and business interruption featured as top business risks in almost all countries, the final ‘top three’ spot was more hotly contested. As unprecedented bushfires continue to reap havoc across multiple Australian states, it’s hardly surprising that climate change has made it into Australia’s top three business risks (in third spot). Risk management leaders say data privacy regulation is the top emerging business risk on their radar. In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience (e.g. business models, regulatory requirements, technology disruption, and more, the opportunity for Internal Audit (IA) to identify and help companies respond to risks is ever-increasing. The themes of license to operate and disruption run through this year’s risks, as social responsibility and broader stakeholder demands intensify alongside the need for digital transformation, greater risk taking and innovation. A new risk in the top three for China this year is cyber incidents. Cyber incidents have been ranked as the top business risk in the USA for 2020. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Show article references#Hide article references, Top 10 business risks and opportunities – 2020 (pdf), Top 10 business risks and opportunities – 2020 – Japanese (pdf), Top 10 business risks and opportunities – 2020 – Spanish (pdf). The Global Risks 2020 report from the World Economic Forum identifies cyber-related issues, such as cyberattacks and data fraud or theft, within the list of top 10 long-term risks. Came to believe in … operational risks: risks that can affect key operations the frequency severity... 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