The evolution of risk over time (Part I)

Understanding risk in a rapidly changing world

In today’s volatile global environment, the concept of risk has expanded far beyond traditional financial concerns. It now encompasses a wide range of challenges, including geopolitical instability, climate change, technological disruption and public health crises. As these risks evolve, so too must the strategies used to manage them.

This article explores how perceptions of risk have shifted over time, drawing on insights from the World Economic Forum’s Global Risks Report 2025. It also examines the growing tension between addressing immediate threats and preparing for long-term challenges. In Part I of this series, we trace the evolution of top risk concerns and highlight why balancing short- and long-term perspectives is now a critical responsibility for risk professionals across industries. We also feature insights from Dave Arick, Managing Director of Global Risk Management at Sedgwick, who brings a practical and strategic lens to this complex topic.

Insights from the global risks report 2025

The World Economic Forum’s Global Risks Report 2025 provides a snapshot of how global leaders and risk professionals perceive the most pressing threats facing the world. In the years following the 2008 financial crisis, economic concerns dominated the list. Issues such as market volatility, unemployment and fiscal crises were top of mind. However, the 2025 report reveals a significant shift. Today, the most cited risks are geopolitical instability, climate-related disasters and the rapid advancement of emerging technologies.

This shift reflects a broader understanding that risk is no longer confined to balance sheets or boardrooms. It is now deeply intertwined with global systems, societal expectations and technological innovation. The report also emphasizes the importance of resilience and adaptability, urging organisations to prepare for a future that is increasingly uncertain and interconnected.

The shifting landscape of risk

According to Arick, perceptions of risk are heavily influenced by current events. When natural disasters or geopolitical conflicts dominate the headlines, those issues tend to rise to the top of the risk agenda. However, he cautions that this reactive mindset can distract from the need for long-term planning.

“If you look back 15 years, the top concerns were economic,” Arick explains. “Coming out of the financial crisis, everyone was focused on recovery and stability. But as those issues faded, other risks began to take their place.”

Today, climate change and extreme weather events are front and center. Depending on a company’s geographic footprint, the risks may include hurricanes, wildfires or flooding. These events require immediate response plans, but they also point to the need for long-term strategies that address the root causes and future implications of climate change.

Technology is another area where the risk landscape has evolved dramatically. Artificial intelligence, once considered a distant possibility, is now a central concern. Arick notes that companies that failed to consider the implications of AI during its early development are now playing catch-up. “At some point, long-term risks are no longer long-term. They become immediate. That is why it is so important to align risk priorities with strategic planning.”

The challenge of balancing short- and long-term risks

One of the most difficult tasks for risk professionals is balancing the need to respond to immediate threats while also preparing for long-term challenges. Arick emphasizes that while risk managers cannot prevent geopolitical conflict or natural disasters, they can prepare for their potential impacts.

For example, Sedgwick has developed vendor networks and safety protocols to support employees who must travel to high-risk regions. “We have colleagues who need to be in places like Israel or other areas experiencing unrest. Our job is to make sure they can do that safely, while still meeting client needs,” Arick says.

This approach requires both agility and foresight. It means having contingency plans in place, building strong communication networks, and maintaining relationships with partners who can provide support when needed. It also means thinking beyond the immediate crisis to consider how today’s events might shape tomorrow’s risks.

Navigating the shifting terrain of risk

As the global risk landscape continues to evolve, risk managers are being asked to play a dual role. They must be both vigilant responders to current threats and strategic leaders who anticipate future disruptions. The insights from the Global Risks Report 2025 reinforce the urgency of this dual responsibility.

However, recognizing risks is only the beginning. The real challenge lies in aligning risk priorities with organizational goals, anticipating future disruptions and embedding risk thinking into the fabric of decision-making. Arick believes that risk professionals must stay closely connected to executive leadership in order to be effective.

“Surveys like the Global Risks Report are helpful, but they don’t always reflect what’s on the minds of your executives,” he says. “If you’re not having those conversations, you’re in the dark. Risk managers need to be part of the strategic dialogue.”

Looking ahead

In Part II of this series, we will explore how Sedgwick is putting this philosophy into practice. Through the leadership of Dave Arick and his team, the company is expanding the role of risk management. From global insurance strategies to secure travel protocols and evolving AI  concerns, Sedgwick’s approach demonstrates how a proactive, integrated risk strategy can protect people, support operations and deliver measurable value to clients.

As the nature of risk continues to evolve, so too must the role of the risk manager. By staying connected to executive priorities, aligning with long-term strategy and quantifying impact, risk professionals can help shape a more resilient and forward-looking organisation.

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