Risk Manager Survey Reveals Climate Change, Wars Top Emerging Risk Concerns

Annual survey by the Society of Actuaries and the Casualty Actuarial Society tracks changes in risk perceptions and priorities.

By: R&I Editorial Team | February 10, 2025

Businessman With Spyglass Looking Out Toward Mountain Range

Climate change, wars, and disruptive technology have emerged as the top emerging risk concerns for risk managers, marking a significant shift from traditional economic and pandemic-related worries, according to an annual survey conducted by the Society of Actuaries and the Casualty Actuarial Society.

Risk managers, primarily from North America, were asked to rank 23 current and emerging threats, with researchers tracking responses over time to identify key trends. The survey, conducted in November 2024, found that that geopolitical risks are still of a major concern to respondents in total, with technological risks trending up and economic risks receding.

Wars, including civil conflicts, emerged as the top current risk. This heightened focus on geopolitical instability was closely followed by concerns about financial volatility, indicating that economic uncertainties continue to loom large in the minds of decision-makers. Climate change rounded out the top three current risks in 2024, reflecting the growing awareness of environmental challenges and their potential impact on business operations.

Notable Trend Changes

Several noteworthy shifts have occurred in the risk perception landscape since 2023. One of the most striking developments is the steep increase in concern over the risk of failed and failing states, the report noted. This surge, after a period of decline from the early 2010s to 2022, suggests a growing recognition of the interconnectedness of global stability and its impact on business operations and international markets.

Economic risks have seen a decline in prominence. The fears of asset price collapse and financial volatility that once dominated the list of top emerging risks have receded, potentially indicating a cautious optimism about global economic resilience.

Another significant trend is the diminishing concern about pandemics and infectious diseases. As the world continues to adapt to post-pandemic realities, the acute fears of infection disease that characterized previous years have begun to subside, allowing other risks to take center stage in the minds of risk managers and business leaders.

Emerging Risk Priorities

The 2024 rankings of top emerging risks reveal significant changes from the previous year, reflecting the dynamic nature of these challenges.

In 2024, climate change and war (including civil war) emerged as the joint top concerns for risk managers. This marks a notable shift from 2023, where climate change held the top spot alone, as it did in 2022 and 2021. The elevation of war to share the premier position in 2024 underscores the growing geopolitical tensions and their potential impact on global business operations.

Following closely behind these twin threats are disruptive technology, ranked third, and cyber/network risks, ranked fourth. The rapid advancement of artificial intelligence (AI) and its widespread adoption across industries have propelled disruptive technology to the forefront of risk managers’ minds. Cybersecurity concerns, exacerbated by the increasing sophistication of digital threats, maintain their position as a critical risk factor.

Demographic shifts round out the top five emerging risks for 2024, highlighting the long-term challenges posed by changing population dynamics across the globe.

As attention shifts to these emerging threats, several traditional risk factors have seen a decline in priority, the report noted. Specific natural disaster risks such as tropical storms and earthquakes, while still significant, no longer feature prominently in top risk assessments. Similarly, security threats like terrorism and weapons of mass destruction have receded from the forefront of risk managers’ emerging risk concerns.

Infrastructure issues, particularly the loss of freshwater services, have also dropped in perceived importance. Health care challenges, including chronic diseases and medical delivery systems, while still crucial, are not currently ranked among the top emerging risks by survey respondents.

Primary AI-Related Concerns

As artificial intelligence (AI) continues to revolutionize business operations, risk managers are increasingly focusing on the potential threats posed by this transformative technology. Asked for the first time to detail the risks posed by AI and Gen AI, increased cybersecurity risks emerged as the top concern among risk managers, reflecting the growing awareness of AI’s potential vulnerabilities to malicious attacks.

Closely following this is the fear of AI manipulation, including the creation and dissemination of deepfake content, which could have far-reaching implications for businesses and society at large.

While cybersecurity and manipulation dominate the AI risk landscape, other factors were “deemphasized,” the report noted. These include the risk of not adopting AI technology, potential degradation of synthetic data, AI hallucinations, and potential copyright infringement issues.

View the full report here. &

The R&I Editorial Team can be reached at [email protected].

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Not Your Average Workers’ Compensation and Auto PPO

Here are four reasons why Horizon Casualty Services is a leader in the workers’ comp and auto PPO space.

Horizon Casualty Services, Inc. (HCS), an affiliate of Horizon BCBS NJ (Horizon), is the cornerstone in the management of workers’ compensation (WC) and personal injury protection (PIP) services in New Jersey. Headquartered in Newark, NJ, HCS provides a service that each of us may need to access at some point, but only if faced with an injury in the workplace or in an automobile accident – something that we don’t often consider.

HCS is a state approved workers’ compensation managed care organization (WCMCO) that offers a comprehensive suite of administrative, provider network and medical management services. These services are designed to achieve the best possible outcomes for injured individuals and a few examples include:

1) Robust Network and Provider Directory Management: HCS identifies providers with WC and PIP experience and contracts with the services most needed by the injured individual. HCS is contracted with nearly all hospitals and all level 1 and level 2 trauma centers in the State of New Jersey. We identify initial treaters, specialists, physical therapy centers, ambulatory surgical centers, urgent care providers, diagnostic centers and more. Using a proprietary formula, the best providers are highlighted so that clients can rest assured their injured claimants are in the right hands.

2) Referral Services/Appointment Scheduling: HCS facilitates the referral of claimants to in-network providers to ensure they receive the most appropriate care at the most appropriate cost.

3) Utilization Management: When appropriate, HCS Registered Nurses work to summarize claimant discharges from hospitals. This process allows clients to have a clear and concise summary to determine next steps for managing the claim.

4) Monitoring and Evaluating Provider Performance: Registered Nurses continuously monitor and evaluate the performance of providers, as this is crucial to maintaining the quality of care within the network. HCS also offers clients, at no additional cost, access to the Outcomes Focused Network; a highly scrutinized subset of the overall network where each provider is rigorously reviewed by HCS nurses to ensure that they provide quality care, access in-network facilities and provider articulate causation statements.

Jackie Alonso, President of Horizon Casualty Services (HCS)

Jackie Alonso, President of HCS, has stated “HCS offers unparalleled service and an unbeatable PPO product in the NJ workers’ compensation and auto space. Coupled with our proprietary software, highly skilled and WC/PIP savvy team, and a deep understanding of the marketplace, HCS offers its clients an impeccable product with the deepest network discounts. We work lockstep with our Horizon peers and being backed by the largest healthcare carrier in NJ sets us apart and allows HCS to thrive in the community.”

Alonso continued, “this [2024] year, we made a concerted effort to get out into the community and have attended multiple fairs and conferences, as both participants and exhibitors. This shift in how we engage with our clients and prospects has allowed us to think more innovatively about how we evolve our products and services. Listening to the voice and feedback from all of our stakeholders and understanding it is about meeting them where they are at. This is how we maintain our impeccable product and showcase it across the region.”

HCS partners with providers and collaborates with them in the local community which allows clients to experience how a best-in-class WC and Auto PPO should work.

For More Information

For more information, email Jed Hoban, HCS Business Development Executive, at [email protected] or visit or visit https://www.horizonblue.com/horizoncasualty/.

About HCS

HCS, an affiliate of Horizon, in business since 1994, is a leading PPO in New Jersey WC and PIP. HCS has a 100% direct-contracted provider network that includes almost all New Jersey acute care hospitals. The network delivers significant overall savings and, with its deep focus on precision, an extremely low appeals rate. Its PPO results, combined with its Healthcare Value Strategy and Outcomes Focused Network, enable insurers to be the best at delivering quality medical care to claimants at the right cost — clearly a win-win for all. HCS and Horizon are independent licensees of the Blue Cross and Blue Shield Association.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Horizon Casualty Services, Inc. The editorial staff of Risk & Insurance had no role in its preparation.

Horizon Casualty Services Inc., an affiliate of Horizon Blue Cross Blue Shield of New Jersey, in business since 1994, is a leading PPO in New Jersey workers' compensation and personal injury protection. The company's 100% direct-contracted provider network includes almost all New Jersey acute care hospitals, significant overall WC savings and, with its deep focus on precision, an extremely low WC appeals rate of 0.2%. Its PPO results, combined with its WC healthcare value and OFN strategy, enables insurers to be the best at delivering quality medical care to claimants at the right cost — clearly a win-win for all.