Companies across the G20 are facing increasingly complex risks arising from technology transformation, geopolitical tensions and the polarisation of the political landscape. As businesses confront cybersecurity threats, fight financial crime and prepare for more changes in legislation and regulation in 2020, our survey reveals that many executives remain unprepared for a new wave of risks and crises.
Upcoming elections in the United States, Brexit and the increase in cyber attacks and regulatory actions, globally, are just a few examples of the complexities driving new threats. Our survey found that failure to fully understand and prepare for the impact of external threats could decrease revenue by as much as five percent, highlighting the imperative of resilience for businesses today.
Encouragingly, in the face of such a dramatic increase in risk, this year’s survey did point to a small improvement in resilience scores, suggesting that some organisations are managing to contain and manage emerging threats through better preparedness. 84% of business leaders surveyed were anticipating a crisis in 2020, with many stepping up their adoption of new technologies. Artificial intelligence,
Around the world, FTI Consulting professionals work closely with clients to anticipate and address the increasingly complex business challenges arising from the risks featured in this report. By testing the impact of 18 distinct scenarios most likely to negatively impact the bottom line, adversely affect reputation and lead to increased regulatory pressure, companies can develop strategic responses to today’s emerging threats.
An additional challenge facing today’s executives is the need to build personal resilience in response to new levels of threat and disruption. Such resilience underpins businesses’ continued ability to thrive, as they face increased pressureto grow turnover, strengthen their brands, as well as engage with regulators and activist consumers.
We would like to thank the extensive network of senior business leaders who have contributed to this project, taking the time to provide their invaluable perspectives with regard to the most pressing challenges facing businesses in 2020 and beyond.
Stephen H. Gunby
President & Chief Executive Officer
Chairman, EMEA Region