What are emerging risks characterized by?

Emerging risks are characterized by new exposures to loss that have not yet been fully understood, evaluated, or addressed. These risks often arise as a result of changes in technology, society, the environment, and business practices. Because they involve uncertainties that have not been widely experienced before, there are typically no established treatment plans or risk management strategies in place.

This distinct nature of emerging risks means that they present evolving challenges that require ongoing assessment and adaptation. Unlike established risks, which have defined parameters and remedies, emerging risks can shift rapidly, making it essential for organizations to stay vigilant and flexible in their approach to managing them. In contrast to scenarios with known exposures or those that have been fully mitigated, emerging risks demand a proactive stance to identify potential impacts and opportunities for intervention.