Global Risk Landscape 2017
Do we live in a riskier world? The answer is yes according to 72% of respondents to the BDO Global Risk Landscape survey who consider that the world has become a riskier place. With risk perception down overall from 87% from last year’s survey however, is this an accurate reflection of the evolving global risk landscape?
In early 2017, BDO’s Global Risk Landscape survey gathered qualitative insight from 500 c-suite and senior level experts across 55 countries, to gain their views on the main risks facing their businesses both today and in the future. The results of this year’s research capture perception of risk at a unique moment in time, with increasing evidence of regional similarities in a globalised and interconnected world.
The report looks at both current and emerging risks, considering a number of key risk themes including:
- macro-economic and geopolitical environment
- disruptive technologies
- and governance.
The results of the survey are somewhat surprising against the backdrop of political, social and economic upheaval seen in 2016: rapid developments in technology leading to an increase in cyber security risk and data breaches; the growth of populist politics and continued regulatory changes; and the evidence of how quickly well-known brands and household names have the potential to collapse in a social media age.
Nine years on from the global financial crisis, it appears that business leaders remain very concerned about their ability to adapt to growing compliance pressures, with 35% of respondents rating regulatory risk as the top threat to overcome.
While the stricter regulatory environment prevails globally, respondents also thought that increased competition in an age of data, disruption and new technology presents both risk and opportunities for their business. Almost all of the CEO respondents felt that failure to innovate and embrace technological change are the risks their businesses are most unprepared for. An ability to adapt, invest in the right technologies and leverage the right data will determine the winners from the losers.
Overall business leaders across EMEA, APAC and the America’s agreed that increasing competition, regulatory risk and economic slowdown/ slow recovery were their top three threats in 2017.