Economic threats continue to overshadow climate and cyber risks as one of the top three near-term risks for business leaders in G20 countries, according to the Executive Opinion Survey, conducted by the World Economic Forum and released by Marsh McLennan and Zurich Insurance Group.
While global economic conditions show signs of improvement, G20 business leaders remain deeply concerned about recession risks, labor shortages, and rising inflation.
The annual survey, based on insights from more than 11,000 business leaders across 121 countries, identifies the top five near-term risks. Economic downturns, labor and/or talent shortages, and inflation continue to dominate the list for G20 countries over the next two years, followed by poverty and inequality in fourth place.
Extreme weather events rank fifth, reflecting a year marked by severe flooding, above-average rainfall, wildfires, extreme heat, and elevated hurricane activity in countries such as Brazil, Germany, Indonesia, and the U.S.
The survey also revealed growing concerns about technological risks, including adverse impacts of artificial intelligence, such as misinformation and disinformation. These risks appeared in the top five rankings for six countries this year, up from three in 2023. Notably, AI-related risks were ranked as the top concern in Indonesia, third in the U.S., and fourth in the UK.
Chris Lay, CEO of Marsh McLennan UK, commented, “The results reveal a landscape of considerable uncertainty for businesses in the UK. The spectre of economic downturns and persistent inflation looms large, as does the ongoing issue of attracting and retaining skilled talent in an environment of labour shortages and shifting demographics. Equally concerning are the implications of new technologies, which, while offering tremendous potential for growth and innovation, present exposures that require careful management. Businesses need to shore up their defences against these new and emerging risks, to stay resilient and adaptable to future challenges.”
Peter Giger, Group Chief Risk Officer, Zurich Insurance Group, added, “As businesses navigate an increasingly complex risk landscape, it is essential to broaden the focus beyond economic risks. 2024 is on track to be the warmest year on record, and so the escalating impacts of climate change must not be ignored. The rapid advancement of emerging technologies will help to overcome the growing challenges, but they also pose new threats. By proactively identifying and mitigating these diverse risks, businesses can build resilience and thrive in the face of uncertainty. Addressing these issues head-on will not only safeguard the operations but also position companies for sustainable success in the future.”
