Uncertain economic growth
68%
Availability of key talent
68%
Tech change
51%
Increased regulation
41%
Changes in consumer behavior
39%
Geopolitical uncertainty
37%
Cyber threats
29%
Policy uncertainty
28%
Commodity price volatility
26%
Climate/environmental change
23%
Technological change and increased regulation also ranked highly, with 51% and 41% of leaders considering them as top threats. Meanwhile, consumer behavior and geopolitical uncertainty appeared in leaders’ top 10 concerns.
Hybrid work implementation
22%
Major health threats
11%
Exchange rate volatility
10%
Trade conflicts
9%
Investor activism
9%
Heightened scrutiny of diversity/inclusion
8%
Taxation
8%
Rising wealth inequality
5%
Protectionism
5%
Populism
4%
Technological change and increased regulation also ranked highly, with 51% and 41% of leaders considering them as top threats. Meanwhile, consumer behavior and geopolitical uncertainty appeared in leaders’ top 10 concerns.
Select External Threat
Uncertain economic growth Availability of key talent Tech change Increased regulation Changes in consumer behavior Geopolitical uncertainty Cyber threats Policy uncertainty Commodity price volatility Climate/environmental change Hybrid work implementation Major health threats Exchange rate volatility Trade conflicts Investor activism Heightened scrutiny of diversity and inclusion Taxation Rising wealth inequality Protectionism Populism
Increased regulation follows a similar trend: A small dip in H1 2022 followed by a steady 10 percentage point increase since H2 2022.
Cyber threats have been a relatively stable concern in previous years, but have moved higher up the agenda. Over the past six months, this threat has increased by 6 percentage points.
Major health threats and return to work have consistently decreased as threats to organizational health over the last two years.
EXTERNAL THREATS
TOP EXTERNAL THREATS
L6M*
% PREPARED OR VERY PREPARED
L6M*
1. Uncertain economic growth
68%
-1%
48%
-10%
2. Availability of key talent
68%
-3%
47%
+1%
3. Tech change
51%
+8%
55%
-2%
4. Increased regulation
41%
+3%
65%
-3%
5. Changes in consumer behavior
39%
+1%
47%
-6%
6. Geopolitical uncertainty
37%
-5%
33%
-4%
7. Cyber threats
29%
+6%
68%
-3%
8. Commodity price volatility
28%
+2%
49%
-4%
9. Policy uncertainty
26%
0%
54%
-6%
10. Climate/environmental change
23%
0%
60%
-4%
Leaders tend to feel that their leadership team is more prepared to address major health threats, increased regulation, and cyber threats, with 71%, 65%, and 68% saying they feel their leadership team is prepared to face these respective concerns.
EXTERNAL THREATS
TOP EXTERNAL THREATS
L6M*
% PREPARED OR VERY PREPARED
L6M*
11.
Hybrid work implementation
22%
-2%
49%
-5%
12.
Major health threats
11%
-4%
71%
-1%
13.
Exchange rate volatility
10%
-2%
50%
-6%
14.
Trade conflicts
9%
+1%
45%
-6%
15.
Investor activism
9%
0%
53%
0%
16.
Heightened scrutiny of diversity/inclusion
8%
-2%
52%
0%
17.
Taxation
8%
+1%
51%
0%
18.
Rising wealth inequality
5%
-1%
40%
-6%
19.
Protectionism
5%
-1%
34%
+3%
20.
Populism
4%
0%
19%
-4%
Leaders tend to feel that their leadership team is more prepared to address major health threats, increased regulation, and cyber threats, with 71%, 65%, and 68% saying they feel their leadership team is prepared to face these respective concerns.
Select External Threat
Uncertain economic growth Availability of key talent Tech change Increased regulation Changes in consumer behavior Geopolitical uncertainty Cyber threats Policy uncertainty Commodity price volatility Climate/environmental change Hybrid work implementation Major health threats Exchange rate volatility Trade conflicts Investor activism Heightened scrutiny of diversity and inclusion Taxation Rising wealth inequality Protectionism Populism
Leadership preparedness to tackle technological change has decreased by 8 percentage points since H2 2022, while preparedness to address increased regulation and cyber threats has been relatively stable in the last 18 months.