Aon Survey Finds Businesses Lag in Addressing "Megatrend" Risks

Aon's inaugural "Business Decision Maker Survey" reveals that 72 percent of business leaders feel their companies are not keeping pace with global megatrends in trade, technology, weather, and workforce. Conducted across North America, the United Kingdom, and Europe, the survey underscores the complexity and volatility faced by businesses today.

Key findings are as follows.

• Trade. Supply chain risks are prominent, with 74 percent of leaders highlighting increased responsibility in this area. Economic concerns like exchange rate fluctuations and commodity price risks are also significant.
• Technology. While advancements in artificial intelligence and data analytics offer advantages, they introduce new risks. Sixty-three percent of respondents measured return on investment on cyber security, and 61 percent audited information technology (IT) suppliers for risk management.
• Weather. Despite recognizing climate change as a risk, businesses are slow to act. While 66 percent understand its implications, only 59 percent have quantified its financial impact.
• Workforce. Rising costs and the need for improved employee experiences are pressing concerns. Fifty-seven percent of companies have modified benefits to enhance affordability, and 52 percent have invested in reskilling for green technology roles.

The survey highlights regional differences in risk preparedness. US business leaders are more focused on supply chain disruptions and workforce safety related to heatwaves, while European and UK leaders prioritize decarbonization and political stability.

Aon's findings emphasize the need for better data and analytics to build confidence in managing these interconnected risks. Confident decision-makers leverage comprehensive data to quantify risk exposures, enabling them to navigate the complexities of the global economy effectively.