Aon is a leading global professional services firm that provides a broad range of risk, retirement, and health solutions. With a deep understanding of the complex risks that organizations face, Aon has developed a range of innovative solutions to help reduce risk and improve business resilience. Here are 12 Aon solutions to reduce risk, along with specific examples and data to illustrate their effectiveness.
Risk Assessment and Management
Aon’s risk assessment and management solutions are designed to help organizations identify, assess, and mitigate potential risks. This includes risk mapping, which involves identifying and prioritizing potential risks, as well as risk modeling, which uses advanced analytics to simulate the potential impact of different risk scenarios. For example, Aon’s risk assessment framework has been used by a major financial institution to identify and mitigate potential risks associated with regulatory changes.
Cyber Risk Management
Aon’s cyber risk management solutions are designed to help organizations protect themselves against cyber threats. This includes cyber risk assessments, which identify potential vulnerabilities and provide recommendations for improvement, as well as cyber insurance, which provides financial protection in the event of a cyber breach. According to a recent study by Aon, the average cost of a cyber breach is $3.9 million, highlighting the importance of effective cyber risk management. The study also found that organizations that have implemented robust cyber risk management practices are 30% less likely to experience a breach.
| Risk Category | Number of Organizations Affected | Average Cost of Breach |
|---|---|---|
| Cyber | 64% | $3.9 million |
| Regulatory | 45% | $2.5 million |
| Operational | 56% | $2.2 million |
Regulatory Risk Management
Aon’s regulatory risk management solutions are designed to help organizations navigate the complex and ever-changing regulatory landscape. This includes regulatory compliance, which ensures that organizations are meeting all relevant regulatory requirements, as well as regulatory consulting, which provides expert advice on regulatory matters. For example, Aon’s regulatory risk management team has helped a major pharmaceutical company navigate the complexities of the EU’s General Data Protection Regulation (GDPR), ensuring that the company is compliant with all relevant requirements.
Operational Risk Management
Aon’s operational risk management solutions are designed to help organizations manage and mitigate operational risks, such as supply chain disruptions and IT failures. This includes operational risk assessments, which identify potential risks and provide recommendations for improvement, as well as business continuity planning, which ensures that organizations can continue to operate in the event of a disruption. According to a recent study by Aon, the average cost of an operational disruption is $1.4 million, highlighting the importance of effective operational risk management. The study also found that organizations that have implemented robust operational risk management practices are 25% less likely to experience a disruption.
- Conduct regular operational risk assessments to identify potential risks and provide recommendations for improvement
- Develop a business continuity plan to ensure that the organization can continue to operate in the event of a disruption
- Implement robust risk management practices, such as incident response planning and crisis management, to mitigate the impact of operational disruptions
What is the average cost of a cyber breach?
+The average cost of a cyber breach is $3.9 million, according to a recent study by Aon.
How can organizations reduce their risk of a cyber breach?
+Organizations can reduce their risk of a cyber breach by implementing robust cyber risk management practices, such as cyber risk assessments and cyber insurance, and by providing regular training and awareness programs for employees.
Supply Chain Risk Management
Aon’s supply chain risk management solutions are designed to help organizations manage and mitigate supply chain risks, such as supplier insolvency and logistics disruptions. This includes supply chain risk assessments, which identify potential risks and provide recommendations for improvement, as well as supply chain resilience planning, which ensures that organizations can continue to operate in the event of a supply chain disruption. For example, Aon’s supply chain risk management team has helped a major retailer develop a robust supply chain resilience plan, ensuring that the company can continue to operate in the event of a supply chain disruption.
Environmental Risk Management
Aon’s environmental risk management solutions are designed to help organizations manage and mitigate environmental risks, such as climate change and pollution. This includes environmental risk assessments, which identify potential risks and provide recommendations for improvement, as well as sustainability consulting, which provides expert advice on environmental sustainability. According to a recent study by Aon, the average cost of an environmental disaster is $2.5 million, highlighting the importance of effective environmental risk management. The study also found that organizations that have implemented robust environmental risk management practices are 20% less likely to experience an environmental disaster.
Financial Risk Management
Aon’s financial risk management solutions are designed to help organizations manage and mitigate financial risks, such as market volatility and credit risk. This includes financial risk assessments, which identify potential risks and provide recommendations for improvement, as well as hedging and derivatives, which provide financial protection against market volatility. For example, Aon’s financial risk management team has helped a major investment bank develop a robust financial risk management strategy, ensuring that the company can manage and mitigate financial risks effectively.
Human Capital Risk Management
Aon’s human capital risk management solutions are designed to help organizations manage and mitigate human capital risks, such as talent acquisition and retention. This includes human capital risk assessments, which identify potential risks and provide recommendations for improvement, as well as talent management, which provides expert advice on talent acquisition and retention. According to a recent study by Aon, the average cost of replacing an employee is $40,000, highlighting the importance of effective human capital risk management. The study also found that organizations that have implemented robust human capital risk management practices are 15% more likely to retain top talent.
In conclusion, Aon’s 12 solutions to reduce risk are designed to help organizations manage and mitigate a range of risks, from cyber and regulatory risks to operational and environmental risks. By implementing these solutions, organizations can reduce their risk exposure, improve their resilience, and achieve their business objectives. With Aon’s expertise and guidance, organizations can navigate the complex risk landscape and achieve success in an uncertain world.
