The risk of skills shortages, the loss of key personnel and succession issues are seen as the most significant threats to the operations of global companies, according to a survey of risk managers.

Human capital risk is now seen as more significant than the threat from reputational risk, which was number one a year ago in the same survey, the Economist Intelligence Unit's quarterly risk barometer.

Sponsored by the Bermuda-based Ace Group of Companies, the survey found that only 32 percent of respondents felt they managed human capital risk effectively.

Around half of the 218 respondents, who are based all over the world, represent companies with an annual revenue of more than $500 million.

The only areas where they felt less confident were risks associated with terrorism and climate change.

Other key findings were:

* Corporate stakeholders are demanding improvement to risk management. Efforts in risk management are being driven by internal and external factors. The board is seen as the most important internal driver for strengthening risk management, while the main external drivers are the demands of regulators and investors.

* Risk permeates the organisation. The risk management function has evolved to become a core area of business practice, driven by the board but embedded at every level of the organisation.

* Companies are creating a C-level manager for risk, a chief risk officer (CRO) to carry responsibility for developing and implementing the risk management framework.