A comprehensive survey conducted by The World Economic Forum has identified cyber attacks and fiscal crises as the primary risks to doing business at a global scale.
Covering nearly 13,000 executives from 130 countries, the survey results show that three of the top five risks are economic-related with “unemployment or underemployment” coming in third and “energy price shock” ranking fourth.
Cyber attacks were ranked as the second biggest challenge for executives, and the most important one for European and North American businesses for the second year in a row.
Environmental-related risks were among the top concerns in South Asia and in East Asia and the Pacific.
Social challenges ranked high in Eurasia, affected by economic slowdown, and Latin America and in the Caribbean.
In the Middle East and North Africa “energy price shock” leads due to ongoing price and production volatility, and in sub-Saharan Africa, where youth unemployment is above 13%, executives are worried by their economies’ inability to create jobs.
“At a time when global economic growth appears fragile, business leaders are deeply concerned by their governments’ fiscal resilience. Meanwhile, cyberthreats remain a major risk due to their rapid evolution and increasingly disruptive potential,” said Emilio Granados-Franco, Head of Global Risks and Geopolitical Agenda at the World Economic Forum.
“But in examining risk at the regional level, we also see various, interconnected drivers shaping diverse risks landscapes. Only by addressing economic risks and societal, technological, and environmental risks in an integrated manner, can stakeholders truly build resiliency.”
John Drzik, President of Global Risk and Digital at Marsh, commented, “Cybersecurity remains the most concerning risk to business leaders in advanced economies, and growing technology dependence for many businesses will only amplify this.
“Combined with fractious geopolitical developments, and growing economic concerns, executives face a very challenging portfolio of potential threats. Business leaders should reevaluate their underlying view of the global risk environment and make greater efforts to strengthen their corporate agility and resilience.”
Eugenie Molyneux, Chief Risk Officer Commercial Insurance, Zurich Insurance Group, added, “There is a real existential threat to businesses worldwide.
“Executives are concerned that governments have too much debt to be able to afford measures that could help avoid a recession, and see cyberattacks as the number one risk in 16 economies representing over 40% of the world’s GDP.”
