How to navigate new risks that come with new retail


Marsh’s latest insights piece discusses the increased competition in the retail environment, as more businesses struggle to continue to exist as technology and the change of consumer habits shift the retail world.  This disruption creates a number of new risks for retailers that must be considered as they look to respond to this dynamic environment.

New risks covered include Brand and Reputation, a retailer’s most valuable asset, and how organisations must be able to react with increased pace to respond positively to threats impacting their brand.

Another risk factor covered is Consumer Acquisition and Retention, which pertains to a consumer that is more informed and connected than ever before.  It looks at how the future landscape for retailers will involve navigating complex operational, financial, and brand models in a more consumer-centric space.

Meanwhile, there are a certain set of risks discussed around the increased use of technology for retailers that have greater access to consumer data but amplified security considerations to manage as well.  These risks present a major shift in risk profiles when combined with the exposures created by significant investments in automation.  It is important to fully quantify and finance cyber risk.

Marsh explains that the risk of Global Supply Chains means that as retailers operate in an ever-more competitive global market, the increased interdependency between companies will result in new risks to businesses and require retailers to maintain a more robust focus on supply chain management.

Finally, Terrorism, Crowd, and Riot risk demonstrates how terrorism events can cause significant business interruption and denial-of-access costs for retail businesses.

As Marsh concludes, the most successful retailers will be the businesses who react quickest to the dynamic marketplace and prepare for the unexpected.  With risk profiles increasingly interconnected in today’s rapidly changing world, survival will depend on how resilient organisations can be to manage disruption – no matter its source – utilising risk mitigation and risk transfer strategies.

To read the full report, visit

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