In this series of articles written by Gen Z’ers, we explore the perspectives, challenges, and opportunities the young generation must face both in their private and professional lives
The Zoomer´s approach to risk management is influenced by their heightened awareness of global issues, digital fluency, and sense of community.
Generation Z is entering adulthood during a time of unprecedented change and uncertainty. From navigating a global pandemic to confronting climate change and dealing with economic instability, this generation has faced and continues to face a complex risk landscape. Understanding the psychology of risk and their approach to risk management offers valuable insights into their resilience and adaptability.
Perception of risk and uncertainty
Generation Z’s perception of risk is heavily influenced by their formative experiences. Growing up in a digital age where information is readily accessible, they are acutely aware of global issues and potential threats. This heightened awareness has been linked to increased anxiety and greater risk aversion. A study by the American Psychological Association found that the youngest generation starting to enter our workforce reports higher stress levels related to global and societal issues than any other generation. Their constant exposure to information about risks makes them more vigilant and cautious in their decision-making processes.
This generation’s heightened perception of risk and uncertainty is driving companies to prioritise transparency and stability. To address these concerns and attract this cautious yet proactive generation, companies need to focus on clear communication to build trust.
Digital fluency and information seeking
One of the key characteristics of the younger generations is their digital fluency. They are proficient in using digital tools to seek information, assess risks, and make informed decisions. When faced with uncertainty, they turn to online resources, social media, etc. to gather information and weigh their options. This reliance on digital tools allows them to stay informed and adapt quickly to changing circumstances. However, it also means they must navigate a vast amount of information and discern credible sources from unreliable ones.
Given Gen Z’s preference for technology and digital platforms, organisations face high digital security risks. This generation’s comfort with sharing information online increases the risk of data breaches and cybersecurity threats. Companies must therefore strengthen their digital security measures and educate young employees on the importance of data privacy and security protocols to mitigate these risks.
Community and collective action
This generation’s approach to risk management is also shaped by their strong sense of community and collective action. They are more likely to engage in activism and advocate for social and environmental causes. This collective mindset fosters a sense of solidarity and shared responsibility, enabling them to address risks collaboratively. By working together and supporting each other, they are better equipped to navigate the uncertainties of the modern world.
This focus on community and collective action compels companies to engage in social and environmental initiatives. Businesses must prioritise corporate social responsibility and sustainability to attract and retain young employees and appeal to consumers who value positive societal impact.
Shaping society
In conclusion, the Zoomer´s approach to risk management is influenced by their heightened awareness of global issues, digital fluency, and sense of community. Their cautious yet proactive mindset allows them to navigate the complexities of modern life with resilience and determination. As they continue to mature and take on leadership roles, their unique perspective on risk management will shape a more informed and prepared society.
Sources:
https://www.apa.org/news/press/releases/stress/2018/stress-gen-z.pdf
https://www.techstep.io/articles/the-rise-of-gen-z-workforce-addressing-mobile-technology-needs-of-digital-natives
https://www.bbc.com/worklife/article/20220803-gen-z-how-young-people-are-changing-activism
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The complexity of today´s risk environment is changing at an accelerating pace, making risk management even more challenging. We have created HORIZON, firstly as a print publication and now as a page for sharing the latest insights about ongoing transformations. Our risk specialists will continue to provide their expertise and knowledge to shine a light on the challenges of the future.
Sebastian Felber
Account Executive
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