PricewaterhouseCoopers | 2023
The world has changed in the past two years, as has the risk environment in which organizations operate. Today, change is fast and disruptive: caused disturbance in the labour market and the supply chain. The current volatile geopolitical environment is further exacerbating supply constraints, heightening cyber risks, introducing rapidly evolving sanctions and putting safety and humanity at the forefront of all decisions. Ransomware attacks are more frequent and more sophisticated, no doubt a driver of cyber’s rise to the top threat to business among CEOs in our 25th Global CEO Survey.
“Organizations’ risk management and broader resilience capabilities need to quickly adapt to support business agility and to contribute proactive, robust and timely risk insights for decision-making… Risk management capabilities provide the greatest value to Board members and business leaders when they are embedded within the organization’s strategic planning and decision-making processes.”
The changing work environment brought on by the pandemic continues to disrupt talent and labour markets. Supply shortages, sanctions and rising raw material costs are heightening risks within supply chains as organizations deal with upstream risks related to subcontractors and other fourth parties that add further complication.
“We are living through extraordinary times, with five broad megatrends—climate change, technological disruption, demographic shifts, a fracturing world and social instability—reshaping the business environment.”
Customers, investors and other stakeholders are laser-focused on ESG, particularly in light of recent proposed SEC climate disclosures. Each of these risks can cause significant impacts, but because they are also highly interconnected, any one risk can initiate far-reaching implications across the enterprise and put brand and reputation at stake.