5th Blog Post- Global Perspective

As an insurance and risk management company, Marsh & McLennan’s modus operandi is being globally aware of their impact on the earth. In fact, on their homepage they advertise their awareness by saying: “we recognize complex risks are increasingly interconnected, with the potential to accelerate as they grow”. Marsh & McLennan even publish global risk reports, with the latest one and 11th issue being published in 2016. In these reports, Marsh & McLennan studies “disruptive shifts in technology, geopolitics, societal expectations, and economic patterns are creating instabilities that are directly impacting events in the world today” in order to make a positive global impact on the world.

Marsh & McLennan use “quantitative analysis of historical data” and use statistics from the World Economic Forum in Geneva to analyze data to be an efficient risk insurance and calculation company. They study the likelihood of ‘disasters’ and the impact that those ‘disasters’ would have on the world. The word ‘disasters’ in this context refers to any kind of man-made or natural catastrophes, from “large scale involuntary migration” or “asset bubbles”. These ‘disasters’ are put into five categories: economic, environmental, geopolitical, societal, and technological. Using this data, Marsh & McLennan can create the best risk insurance policies they can.

Marsh & McLennan have access to tons of data about the world, but perhaps what is one of the most interesting statistics they have access to is “a regional perspective...of global risks”. This means that they know what risks each regional area is “most likely” susceptible to. For example, North America is at a higher risk for cyber attacks, data fraud or theft, and extreme weather events. Sub-Saharan Africa, however, is more susceptible to failure of national governance, unemployment or underemployment, and failure of critical infrastructure. Throughout the world, the most common risks are: failure of national governance, extreme weather events, and the most common risk is unemployment or underemployment. Interestingly, the only place on earth where large risks are technological is in North America.

Strategic Partner Of The Global Risks Report 2016. (2016): 1-103. The Global Risks Report, 2016. World Economic Forum, 2016. Web. <https://www.mmc.com/content/dam/mmc-web/Global-Risk-Center/Files/world-economic-forum-global-risk-report-2016.pdf>.

"Global and Emerging Risks." Marsh & McLennan Companies. N.p., n.d. Web. 19 Apr. 2016. <https://www.mmc.com/global-risk-center/overview/grc-global-and-emerging-risks.html>.