Aon’s Survey Reveals Increasing Business Volatility and Emerging Global Risks

Aon’s ninth Global Risk Management Survey, drawing on nearly 3,000 participants across 61 countries, reveals that business operations have become more volatile and uncertain since 2021. The survey explores the evolving risks and challenges faced globally by organisations.

The lingering effects of the COVID-19 pandemic remain significant, with cybersecurity vulnerabilities and hacker threats identified as major concerns. The global economy has faced numerous challenges over the past two years, including macroeconomic and geopolitical shifts. Predicted recessions did not materialize broadly, but economic growth slowed in major regions like China, the EU, and the U.S., with some Eurozone countries experiencing recessions.

Factors such as protracted inflation, changing interest rates, geopolitical instability, and workforce shortages have complicated the global economic landscape. These economic challenges, along with frequent severe weather events, have led to substantial insured losses and highlighted significant protection gaps.

Climate change has become an urgent priority for businesses, emphasizing the need to address environmental concerns and adopt sustainable practices. Organisational challenges have evolved due to the pandemic, including chronic workforce shortages and shifts in employee expectations regarding work/life balance. Companies now focus on employee value propositions and wellbeing strategies as key to attracting and retaining top talent.

The survey identifies the top 10 current risks for businesses, which 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, damage to reputation or brand, failure to innovate, and increasing competition.