Which of the four risks mentioned do you believe is most difficult to deal with and why?

INSIGHT BOX 2-2 A recent international risk management survey of 320 organizations across 29 countries suggests that firms are focusing greater attention on increasingly complex and dynamic risks. Described below are the four risks that were identified most frequently as a concern by the respondents. Also provided is the percentage of the firms that reported that they were not appropriately prepared to deal with the risk. Reputation risk was the most frequently identi- fied concern among the surveyed organizations. More than half the surveyed firms (52 percent) indicated that they were not \"risk ready\" to deal with an event that could harm the reputation of their firm. As was noted in the report, it can take years for an organization to build a favorable reputation, but it can be destroyed overnight. Business interruption was the second most fre- quently identied concern among the respondents. This finding suggests that firms are concerned that an adverse event could affect their rms' earnings and disrupt their normal operations signicantly, resulting in a large indi- rect loss for the firm. Of the respondents, 30 percent reported that their firms were inadequately prepared to handle a business interruption episode. Third-party liability was the third most frequently reported concern. Litigation is becoming a global con- cern as countries around the world are experiencing increased costs in satisfying their legal duties to others. One-quarter of the responding organizations indicated that they were not ready to address such litigation. Disruptions or supply chain failures were also a major concern for the surveyed organizations. Over a third of the respondents (37 percent) indicated that their organizations were not prepared to deal with a supply chain failure, reecting the complexity of protecting a rm from adverse outcomes that frequently arise away from the site of the risk managers' organization. Based on Aon, Global Risk Management Study 2007: Extract of Key Findings, April 24, 2007. (Retrieved on May 19, 2011 from www.aon.com)