Lloyd’s chairman shares his thoughts on emerging risks at a NATO conference
A fundamental change in the global risk landscape poses serious challenges to businesses and governments alike, according to Lloyd’s chairman Lord Levene.
The combination of climate change and social upheavals may potentially result in resource shortages and profound supply chain issues, he said. The Lloyd's chairman also warned that supply chain disruption would be exacerbated by the current ‘just in time’ product delivery system that companies across the globe have adopted to keep inventories low.
Addressing political risks Levene said that although threats such as piracy are age old, ‘these risks are being redefined and are evolving in response to the economic downturn’. Expropriation, he added, is a threat that’s moving up the risk agenda.
He also warned that the world must proceed with care when applying innovative technologies, such as nanotechnologies, and plan for the impact of pandemics, stating that Swine flu ‘should at least serve as a warning’.
Levene made the remarks at a major security conference in Brussels with the military coalition NATO.