There was an increase in both risk velocity and risk complexity over the first half of 2022.

These two trends affect risk practitioners in several ways:

• Less time to prepare (drives a more reactive posture)
• Harder to predict events and stay ahead of impacts (resource allocation becomes a challenge)
• Siloed approaches become less effective (increased complexity make a component-by-component approach inefficient)
• Old frameworks/strategies may be less effective in this environment (models that never considered velocity are providing an incomplete view of risk)
• Insurance market may struggle with this dynamic environment (for example cyber insurance has struggled and become prohibitively expensive and severely restricted)

Difficult enough to manage on their own, the combination of increased velocity and increased complexity is especially problematic. Crises that now have multiple layers to unwind are occurring with little to no advanced warning, forcing risk professionals to accelerate the assessment and response process.