Report | January 2023
ÐÇ¿Õ´«Ã½ Risk Barometer
Elevated levels of disruption look set to continue in 2023 as dangers fromÌýdigitalization, the war in Ukraine, high energy prices and inflation, geopoliticalÌýand economic uncertainty, and climate change test already strained businessÌýmodels and supply chains, according to the ÐÇ¿Õ´«Ã½ Risk Barometer.
The top business risks for 2023
The most important corporate concerns for the year ahead, ranked by 2,712 risk management experts from a record 94 countries and territories.
The major business risks for 2023 globally
Click on the bars in the chart for further details
Figures represent how often a risk was selected as a percentage of all survey responses from 2,712 respondents. All respondents could select up to three risks per industry, which is why the figures do not add up to 100%. Source: ÐÇ¿Õ´«Ã½
Cyber and business interruption and supply chain disruption: The top risks for businesses in 2023
Despite positive moves to diversify business models andÌýsupply chains since Covid-19, businesses continue toÌýexperience significant disruption around the world. TheÌýpandemic came as a massive shock to business models,Ìýcreating global shortages, delays and higher prices, whileÌýthe war in Ukraine triggered an energy crisis, particularly inÌýEurope, turbo-charging inflation.
Unsurprisingly, given the current ‘permacrisis’, businessÌýinterruption and supply chain disruption ranks as theÌýsecond top risk in this year’s ÐÇ¿Õ´«Ã½ Risk Barometer (34%).ÌýIt is second only to cyber incidents (by just a few votes,Ìýalso on 34%), whose top position reflects the importanceÌýof today’s digital economy, the evolving threat fromÌýransomware and extortion, as well as geopolitical rivalriesÌýand conflicts increasingly being played out in cyber space.ÌýCyber risk and business interruption (BI) are closely linkedÌýwith cyber also ranking as the cause of BI companiesÌýfear most.
Indeed, the results show that a number of BI-related risksÌýhave climbed this year’s rankings as the new economic andÌýpolitical consequences of the world in the aftermath ofÌýCovid-19 and the Ukraine war take hold. These include theÌýimpact of the energy crisis, a new entry in the 2023 surveyÌýat #4, while macroeconomic developments, such asÌýinflation and potential recession, peaks at #3 – its highestÌýposition since the first ÐÇ¿Õ´«Ã½ Risk Barometer in 2012.ÌýPolitical risks and violence is another new entry in the topÌý10 global risks at #10, shortage of skilled workforce risesÌýto #8, while outside of the top 10, the prospect of criticalÌýinfrastructure blackouts or failures (#12) is also of moreÌýconcern to respondents than 12 months ago. Conversely,Ìýpandemic outbreak plummets down the list of concernsÌý(#4 in 2022 to #13 in 2023) as vaccines have brought anÌýend to lockdowns and restrictions in most major markets.ÌýThe exception? China sees pandemic risk rise year-on-yearÌý(from #9 to #3) – the only country in the survey to do so –Ìýfollowing its recent easing of long-in-place restrictions.
What keeps business leaders up at night?
Global risks in focus
Methodology of the ÐÇ¿Õ´«Ã½ Risk Barometer: An annual survey of gobal business risks
The 12th ÐÇ¿Õ´«Ã½ Risk Barometer incorporates the views of 2,712 respondents from 94 countries and territories. The annual corporate risk survey was conducted among ÐÇ¿Õ´«Ã½ customers (businesses around the globe), brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers, claims experts, as well as other risk management professionals in the corporate insurance segment of ÐÇ¿Õ´«Ã½ entities.
Respondents were questioned during October and November 2022. The survey focused on large- and small- to mid-size companies. Respondents were asked to select the industry about which they were particularly knowledgeable and to name up to three risks they believed to be most important.
Most answers were for large-size companies (>$500mn annual revenue) [1,281 respondents, 47%). Mid-size companies ($250mn to $500mn revenue) contributed 519 respondents (19%), while small-size enterprises (<$250mn revenue) produced 912 respondents (34%). Risk experts from 23 industry sectors were featured.
Ranking changes in the ÐÇ¿Õ´«Ã½ Risk Barometer are determined by positions year-on-year, not percentages.
All currencies listed in the report are in US$ unless stated.
2,712 respondents
94 countries and territories
23 industry sectors
Countries and industry sectors need at least 15 respondents to feature in the ÐÇ¿Õ´«Ã½ Risk Barometer Appendix results document.
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What do you want to know about ÐÇ¿Õ´«Ã½ Risk Barometer 2023?
The Risk Barometer is a valuable resource that assesses emerging risks across industries and sectors, providing businesses and professionals with insights to anticipate and manage potential challenges. By identifying emerging risks, analyzing their severity and impact, and offering industry-specific guidance, the Risk Barometer enables informed decision-making, proactive risk mitigation, and cross-industry collaboration. It empowers organizations to adapt to evolving risk landscapes, enhance their resilience, and communicate effectively with stakeholders.
The Risk Barometer assists businesses in creating effectiveÌýrisk management strategiesÌýand preparedness plans by identifying and highlighting emerging risks, informing decision-making, prioritizing risks, offering industry-specific insights, guiding risk mitigation efforts, aiding scenario planning, facilitating resource allocation, supporting communication with stakeholders, and enabling benchmarking against industry trends. With its dynamic and tailored information, the Risk Barometer enhances organizations' ability to proactively address potential challenges and enhance their resilience.
The Risk Barometer has a role to play in assisting organizations to proactively anticipate and address potential challenges and disruptions. It achieves this by identifying and highlighting emerging risks, increasing risk awareness, informing decision-making, prioritizing risks, facilitating scenario planning, fostering adaptability, build resilience, enabling industry benchmarking, influencing strategic planning, aiding stakeholder communication, and promoting cross-industry learning. With its comprehensive insights, the Risk Barometer empowers organizations to take proactive measures and strategic actions to mitigate risks and navigate uncertainties effectively.
ÐÇ¿Õ´«Ã½ Risk Barometer 2023: Further information
Countries and industry sectors need at least 15 respondents to feature in the ÐÇ¿Õ´«Ã½ Risk Barometer Appendix results document.
Pictures: Adobe Stock
Previous ÐÇ¿Õ´«Ã½ Risk Barometer reports
ÐÇ¿Õ´«Ã½ Risk Barometer 2013 to 2023
The most important business risks in the last 10 years - globally
Click on a year in the timeline to see the development of the risks over time
Click on the bars in the chart for further details
This graphic shows how perceptions ofÌýselectedÌýtop risks have changed over the past 10 years (according to % of responses). Not all risks that have featured in the annual survey appear in this graphic as risks and categorizations have changed over time. To view the top risks for each year by ranking position see the previous reports.
Source: ÐÇ¿Õ´«Ã½
Source: ÐÇ¿Õ´«Ã½
Webinar: Discuss regional and local results
In some regions and countries, we will offer virtual events to discuss the regional and local results of the ÐÇ¿Õ´«Ã½ Risk Barometer 2023 with you. More dates to be announced.
North America
Recorded in April
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London & Nordics
Thursday, 19 January,Ìý09:30-10:30 am GMT
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Global media call introducing ÐÇ¿Õ´«Ã½ Risk Barometer 2023
On January 17, 2023,ÌýShanil Williams, Board Member and Chief Underwriting Officer Corporate, ÐÇ¿Õ´«Ã½ Global Corporate & Specialty,ÌýandÌýLudovic Subran, Chief Economist, ÐÇ¿Õ´«Ã½ SE, have introduced the ÐÇ¿Õ´«Ã½ Risk Barometer 2023 in a video conference.
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