Information Technology
Nearly Three-Quarters of Business Decision Makers Feel Their Businesses Are Not Moving Fast Enough to Address "Megatrend" Risks, Aon Survey Finds
"These findings confirm what we're hearing from our clients every day – the world is more volatile and complex, creating uncertainty and need for new solutions across our global economy," said Aon CEO Greg Case . "Business decision makers recognize the enormity of the challenges presented by the megatrends of Trade, Technology, Weather and Workforce and they are looking for actionable insights and innovative tools to more quickly address critical risk and people issues."
The majority of the survey's respondents identified all four megatrends as extremely important to their organizations. However, the survey also revealed that Trade, Technology and Workforce ranked as bigger priorities (with 80-plus percent of the respondents rating them as "extremely important") while 70 percent of those surveyed ranked Weather as a top-priority risk. Other highlights of the survey include:
The survey also revealed key differences in risk preparedness between organizations in the U.S. and those in Europe and the UK. For example, 48 percent of U.S. business decision makers select supply chain disruption as a top Trade risk, compared with 27 percent in the EU and UK. Meanwhile, 44 percent of decision makers in the EU and UK see war and political instability as a top Trade risk, compared with 28 percent in the U.S.
Regarding Weather risks, 47 percent of business decision makers in Europe and the UK are prioritizing decarbonization and clean energy, compared with only a third (33 percent) in the U.S. However, U.S. leaders are paying more attention to workforce safety related to heatwaves (45 percent in the U.S., compared to 40 percent in the EU and UK) and property damage caused by natural disasters (37 percent in the U.S., compared to 33 percent in the EU and UK).
Building on the results of the firm's recently released 2024 Client Trends Report: Better Decisions in Trade, Technology, Weather and Workforce , Aon's Business Decision Maker Survey found that as risks grow more interconnected, business decision makers feel pressure to take on more responsibility to manage the challenges found within these trends such as artificial intelligence and climate risk.
Responding to these megatrends risks is made more difficult by continued concern about macroeconomic and financial conditions. Seventy-seven percent of business decision makers are concerned about interest rate fluctuations and 73 percent are concerned about asset price volatility impacting their business in the next year.
"It's clear that without taking action, business decision makers will not be able to effectively manage their exposures to these megatrends over the next year," said Aon President
Eric Andersen . "As the megatrends grow more interconnected, businesses which adopt a comprehensive, data-driven, forward-looking approach to risk management will more confidently address challenges and seize opportunities amid uncertainty."
Data and analytics play a vital role in building executive confidence amid this increased pressure. Of those business decision makers who feel "very confident" their company will be able to effectively manage risk exposures over the next year, 60 percent say they have the data and analytics they need to address challenges, while just 41 percent of less confident decision makers feel the same. Modeling climate and weather risks is a particular concern, with only 39 percent of decision makers very confident they have accurate data, analytics and insights to protect their businesses.
Confident business decision makers also benefit from effectively sizing and pricing risk exposures and event scenarios. Fifty-nine percent of decision makers who are "very confident" have quantified the profit-and-loss of supply chain, cyber risk, and weather-related scenarios and events in the last year, compared to just 36 percent of leaders less confident they are effectively managing risk exposures.
Aon's inaugural Business Decision Maker Survey was conducted through online interviews with 812 business decision makers between April 24 and May 5, 2024 . Respondents included C-suite executives, senior executives, and executives of companies with more than 500 employees in the United States , Canada , United Kingdom , Germany , France , Italy and Spain . Additional information about the Business Decision Maker Survey can be found here .
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries and sovereignties with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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