Re/insurance broker Aon has released the results of its 2022 Executive Risk Survey, “Making Better Decisions in Uncertain Times” finding that leaders who are making better decisions about risks are better prepared to navigate through and succeed during highly volatile times and economic uncertainty.
Aon’s research involved conducting 800 interviews with C-suite and senior executives at companies with 500+ employees.
the questions involved were related to what attributes set leaders who are very prepared for a recession apart, along with how are they making better decisions to position their companies for growth at this pivotal time.
79% of business leaders expect a recession this year, with just 35% reporting feeling very prepared for that recession.
Greg Case, chief executive officer of Aon, commented, “Strong, prepared leaders are essential to protecting an organisation’s resilience and finding growth opportunities in the face of heightened volatility.
“This year’s report reveals that leaders who are very prepared to weather economic challenges embrace calculated risk-taking as an engine of growth.”
Aon’s study found that business leaders who are very prepared for a recession share four fundamental attitudes toward preparedness. These are, embracing risk, heeding analysis and advice from internal and external stakeholders, understanding that risk are interconnected, and not hitting the brakes on long-term investment or ignoring long-tail risks.
Chase added, “Climate risk is not a probability, it is a certainty and severe weather is becoming more and more a part of everyday life. What this research shows us is that while climate change is one of our greatest challenges, it could also be one of our greatest opportunities.
“It is the ultimate example of the interconnectivity of risk. More companies are looking at the challenges caused by climate change beyond regulatory compliance and reputation management and are digging into the related risks where the impact is immediate and measurable – business interruption, material scarcity, supply chain issues and reputation damage. And we are seeing that the leaders who are investing more time and resources to the challenge are better prepared as a result.”
