Preface

It’s been called the perfect storm, and in my experience - having worked through economic downturns in the 1970s and ‘90s - the current situation is unprecedented. We are witnessing a welcome degree of cooperation among the world’s governments, reinforcing the message that this is a global crisis needing international solutions. Legislation and governance which would scarcely have been conceived of a few months ago are now the norm. The challenge, as always for business leaders, is to respond quickly and positively to this new environment.

At Marsh, my management priorities are focused around our core activities: making sure we are pro-active in providing appropriate products, services and solutions matched to our clients’ particular needs and that our own risk management procedures are robust and strictly adhered to.

The global credit crunch and deteriorating global economic conditions have understandably dominated the headlines, but there are other dynamics carrying just as significant consequences for European business. They include such risk issues as terrorism, climate change, energy volatility, and the emergence of the BRIC countries (Brazil, Russia, India, China) and other parts of Asia and the Middle East as the world’s future economic powerhouses.

Countries comprising the G-20 group of nations, for instance, will account for an increasing share of global output. As they approach western European economies in terms of size, output and ownership, there will be far reaching implications for home grown businesses. This shift in economic power will have important consequences for labour and skills, sociopolitical pressures, and global supply chains and trade. These and other critical risk issues are discussed in Global Risks 2009, the World Economic Forum’s annual risk report, prepared by MMC and other world class business and research organisations.

The topics addressed in this report provide guidance and advice in the management of risk. While preparing their companies for the coming twelve months, prudent leaders will be taking action around risk mitigation to strengthen their firm’s ability to succeed in this volatile global environment. As the world’s leading insurance broker and risk adviser, Marsh is proud to work with companies across the globe in helping them meet their insurance needs. We hope the guidance in these pages will provide help and insight into building resilience and supporting a successful future for your organisation.