The ninth edition of Aon’s Global Risk Management Survey highlights that conducting business has not become any easier since 2021; rather, it has become more volatile and uncertain.
The survey, based on responses from nearly 3,000 participants across 61 countries and territories, delves into the shifting landscape of risks and the challenges faced by organisations worldwide.
The COVID-19 pandemic, a significant factor in the 2021 survey, continues to cast a long shadow. Hackers, exploiting cybersecurity vulnerabilities, emerged as a top concern for businesses in 2021, setting the stage for increased vigilance in the face of evolving digital threats.
Over the past two years, the global economy experienced a whirlwind of macroeconomic and geopolitical changes. While the predicted widespread recessions did not materialise, economic growth in key regions, including China, the EU, and the U.S., slowed significantly. Several Eurozone countries, including Germany, found themselves in a recession.
Protracted inflation, fluctuating interest rates, geopolitical volatility, and workforce shortages further complicated the global economic landscape.
These challenges, combined with frequent and severe weather events, resulted in billions in insured losses, underlining a substantial protection gap.
Climate change emerged as a pressing organisational imperative, reflecting the urgent need for businesses to address environmental concerns.
In this context, the survey underscores the growing importance of adopting sustainable practices and mitigating climate-related risks.
Organisations are grappling with evolving business models shaped by the pandemic, navigating chronic workforce shortages, and addressing employee expectations for improved work/life balance.
In this competitive environment, employee value propositions and wellbeing strategies have become essential for attracting and retaining top talent.
Top risks identified in the survey reflect the complex intersection of operational and talent-related challenges amid macroeconomic forces.
The top 10 current risks include cyber attacks or data breaches, business interruption, economic slowdown or slow recovery, failure to attract or retain top talent, regulatory or legislative changes, supply chain or distribution failure, commodity price risk or scarcity of materials, damage to reputation or brand, failure to innovate or meet customer needs, and increasing competition.
