Our perspective: 4 risk themes to know in 2023
The COVID-19 pandemic, the Russia-Ukraine conflict, significant natural catastrophe events worldwide, and their long-term geopolitical and geoeconomic implications, have driven the highest inflation rates in decades and cost of living crises worldwide. Macroeconomic developments are enflaming fears of an imminent economic downturn, creating unease about the short-term risk outlook and future growth. Building resilience during such turbulent times requires new strategic approaches to risk identification, decision making, and preparedness.
In today’s business landscape, technology and end-user experience play a leading role in efficiency, growth, and human advancement. As companies move more operations into the digital realm and develop transformative technology — from blockchain to AI to genetic engineering and beyond — it’s imperative that they reinforce resilience to rapidly evolving cyber risks, changing regulatory and privacy rights regimes, and physical and virtual attacks on valuable data and systems.
Climate and sustainability
Environmental risks dominate organisations’ long-term concerns in the GRR 2023. Most of these relate directly or indirectly to climate change, which is generally regarded as an existential risk. Resilience strategies that focus on new approaches to assessing and mitigating climate change risk and help accelerate investments in the green energy transition will enable businesses and the world to meet their sustainability targets.
The COVID-19 pandemic amplified existing pressures and strains on global health systems, mental health management, and ways of working. However, it also fostered higher levels of executive awareness and involvement in improving access to healthcare and protecting worker health and well-being. By shifting focus to changing the environments people work and live in, improving the availability of supports people truly need, and adopting an overall culture of health and well-being, businesses and their workers can become more resilient.