Leading Lessons from RIMS 2025 (Part I)

As the risk landscape evolves, organizations face new and increasingly complex challenges that demand innovative, strategic responses. RISKWORLD 2025 highlighted many emerging themes and how risk managers might prepare to address them.

Here are some of the takeaways from this year’s educational sessions.

1. Artificial Intelligence (AI) Presents Ethical and Cybersecurity Challenges

The rise of unauthorized AI tools, known as “shadow AI,” poses significant cybersecurity, privacy, and operational risks. These tools, used to improve productivity and expedite manual tasks, are an emerging source of risk and governance challenges for organizations. Operationally, they can lead to bias and inaccuracies, in addition to data privacy violations, intellectual property (IP) exposures, and unauthorized access. Generative AI is transforming underwriting, claims processing, and risk profiling. While it offers enhanced efficiency, it also introduces new risks, like misplaced trust, biases, blind spots, and missed opportunities. Organizations must implement detection strategies and governance policies to mitigate emerging threats.

2. Risk Management Is Increasingly Recognized as a Strategic Function

Risk management is evolving from a compliance function to a strategic partner in decision-making. Integrating enterprise risk management (ERM) with operational assessments and analytics enhances organizational resilience and resource allocation. However, making that connection evident to an organization’s executive team requires understanding the factors most important to them. Risk managers must determine their risk profile to develop the appropriate risk program to address their strategic needs.

3. Construction Industry Continues to Face Complex Risks

The construction sector faces unique risks, including mega-project capabilities, labor shortages, and supply chain disruptions. Mega projects that employ multiple general contractors may take years to complete, and often require months of intensive underwriting to insure properly. The ongoing labor shortage is being driven by competing industries that are less labor-intensive. An emphasis on worker wellness, both mental and physical, may help the current workforce retain employees.

4. Global Insurance Programs Demand Adaptable Solutions

Managing insurance programs across borders requires tailored solutions that address local compliance, cultural nuances, and dynamic risk landscapes. A decentralized program, with insufficient limits and coverage and a lack of oversight, can create significant challenges in the delivery and execution of an effective global program.  Connecting with a reliable, innovative, and trusted broker partner is key in consistently monitoring a global program and knowing how to pivot when it does not fit your needs.

5. Mitigating the Damage of Product Recalls Requires a Focused Response Plan

Product recalls can significantly impact brand reputation and financial stability. With roughly 3500 product recalls annually, the average U.S. consumer might miss a recall, especially with the number of secondhand market sales. Speed, transparency, and empathy are essential in a product recall strategy, and when approached correctly, a recall may build consumer trust.