The survey, which polled more than 2,400 business leaders across 33 industries and 60 countries, revealed that about three of 10 respondents have been affected by last year’s top business risks. In 2022, cyber-attacks or data breaches became the top business risk in the region, surpassing economic slowdown or slow recovery.
The survey also found that the COVID-19 pandemic has not only dominated the risk landscape, but has also fundamentally altered how business leaders prepare for emerging risks. Now, a new challenge has emerged: a global recession.
According to the survey, despite increases in reported levels of risk readiness for traditional risks, growing volatility and the changing nature of top 10 risks led to the highest ever reported loss of income for businesses.
The survey identified four key themes that characterize the most confident and prepared leaders in this new era of volatility:
- They are proactive in managing risks and seizing opportunities
- They invest in risk management capabilities and innovation
- They leverage data and analytics to inform decision making
- They foster a culture of risk awareness and collaboration
Greg Case, CEO of Aon, said: “The world has never been more volatile, and the stakes have never been higher. Business leaders must respond to more risks than ever before – and the consequences of getting it wrong can be existential. Our survey shows that the most successful organizations are those that embrace risk as a source of advantage and drive better performance through better decisions in an uncertain world.”
The survey also highlighted the importance of environmental, social and governance (ESG) factors in shaping the risk landscape. ESG-related risks, such as climate change, social unrest and regulatory changes, ranked among the top 10 risks for the first time in the survey’s history.
The survey also revealed the impact of digital transformation on businesses, as more than half of the respondents said they plan to increase their use of emerging technologies, such as artificial intelligence, blockchain and robotics, in the next three years.
The survey also showed that the most resilient businesses are those that have a holistic and integrated approach to risk management, covering strategic, operational, financial and people risks.
The survey, which is conducted every two years, provides insights into the biggest risks facing organizations, both now and in the future, and how they can best manage them.
