Global Risk Landscape
27 July 2017
Original content provided by BDO Switzerland
Are we living in a more risky world? According to 72% of respondents in BDO's "Global Risk Landscape" survey, the answer is yes. However, given that risk perception has dropped since last year (87%), is it a faithful representation of the evolution of risk throughout the world?
As part of the survey, conducted in early 2017, BDO surveyed 500 senior executives and experts from 55 different countries to discover the risks their companies currently face, and those they think they will face in the future. The results of this study reflect the perception of risk at a single time, with increasing evidence of regional similarities in a globalized and interconnected world.
The report analyzes current and emerging risks and addresses a number of risk issues including:
- the macroeconomic and geopolitical environment
- breaking technologies
- the governance.
The results of the survey are somewhat surprising in this context of political, social and economic upheaval in 2016: rapid technological developments leading to increased risk of cybersecurity and data breaches, growth of populist parties and ongoing regulatory changes, as well as evidence that familiar brands and familiar names can rapidly lose momentum in an era where social media has great influence.
Nine years after the global financial crisis, business leaders are still concerned about their ability to adapt to the growing pressure of compliance. Indeed, 35% of respondents believe that the increasingly severe regulatory environment is the main threat to overcome.
However, respondents are also of the view that increasing competition in an era of data, breakdown and new technologies presents both risks and opportunities for business. Almost all of the CEOs who participated in the survey believe that their companies are least prepared to face the risk of failing to innovate and to keep up with technological developments. The winners will be those who will be able to adapt, invest in the right technologies and use the right data.
In general, business leaders in EMEA, APAC and the Americas agree that increased competition, regulatory risk and slower economic deceleration / slow recovery are the three most important threats in 2017.
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