Executive Summary
Businesses are navigating a risk environment that’s more layered and unpredictable than ever. Political shifts, economic uncertainty and global tensions are converging at an unprecedented scale, and our survey results reflect the impact that this is having on business confidence.
While it’s easy to get caught up in short-term disruptions, the real opportunity lies in looking ahead.
Growth is still possible – but it demands sharper foresight, faster adaptation and a clear view of where risk meets opportunity.
Seismic shifts mean businesses need to be shrewd on the uptake – it’s time to rethink risk management strategies. After all, protectionism is back. Newly elected governments are pulling up the drawbridges, redrawing alliances and rewriting the rules of trade. Sovereign debt is piling up across Western economies, straining financial systems and impacting financial resilience, balance sheets and supply chains.
Meanwhile, new blocs are forming. CRINK – China, Russia, Iran, North Korea – is a growing challenge to Western dominance. The US-China rivalry is escalating across trade, finance, tech, and security. And Russia’s ongoing conflict in Ukraine continues to reshape Europe’s risk map, while hybrid threats – ranging from cyber attacks to energy sabotage – are increasingly targeting critical infrastructure. At the same time, the war in the Middle East is deepening regional instability and influencing global energy markets, global supply chains and diplomatic alignments.
This is fragmentation in real time. Fiscal policies are inconsistent, trade negotiations are divided, and the global economy is moving in unpredictable directions.
Businesses are adapting and finding ways to grow amidst the turmoil. Here’s how…
Economic uncertainty is climbing the ranks. Last year, 21% of businesses said it was their biggest threat. Now it’s 26%. Inflation’s doing the same – up from 24% to 27%. Inflation is stubborn, interest rates are high, and the threat of a financial downturn is in the air – so, the investment climate is getting harder to navigate.
Only the uncertainty is consistent. And yet, firms say they’re more confident handling it. In the face of geopolitical and economic instability, many are busy reassessing their risk strategies and shoring up their resilience weak spots.
Ask any business leader what’s changed lately, and the answer might be: everything. But for firms that can stay flexible, there’s real opportunity. Emerging tech and cleaner energy are far beyond the era of being trends – they’re reshaping entire industries, and driving long-term shifts in strategy, investment and talent.
The businesses that adapt quickly can seize real competitive advantage. And the astute ones aren’t doing it alone. With the right insurance partners, insurance underwriting and strategic planning, they’re finding ways to share risk, protect against financial shocks and grow with confidence.
