Financial and economic uncertainty will test business resilience

In today’s volatile market environment, shifting market conditions, rising inflation and fluctuating demand are putting pressure on cash flow. There is concern about tariff escalation and trade-restricting measures, which could affect competition and have wider economic consequences. The unpredictability of interest rates and rising borrowing costs further heighten the risk of bad debts and financial losses. Organizations need to adopt robust financial forecasting and cash flow management strategies to navigate market volatility and mitigate the impact of rising costs.

Extreme weather likely to worsen over the next decade

The growing impact of climate challenges brings significant risk of operational disruption, with extreme weather events now ranked as the #1 risk for the next 10 years.2 Alongside this, organizations face mounting pressure from stakeholders to demonstrate their commitment to sustainability. Organizations need to go beyond compliance to adopt best-practice climate risk and sustainability measures in order to protect the organization, people, assets and reputation to remain competitive.

Technological risks still “under the radar”

Advances in technology, robotics and AI are driving competition for innovation and efficiency, but they also introduce new cyber vulnerabilities and operational risks. In the rush to capitalize, your organization may not be aware of where those risks lie. The growing volume and complexity of data being generated, alongside escalating cyber threats and data breaches, amplify these challenges. Your organization must adapt its strategies to protect critical systems, ensure data security and maintain compliance.

Supply chains are threatened by conflicts and climate change

The increasing complexity of global supply chains makes organizations more vulnerable to disruptions caused by conflicts, cyber issues, shifting government policies and extreme weather events. Organizations are also reliant on suppliers and distributors to manage risk effectively. It’s no longer enough for your organization to view resilience in isolation. You need to think about the end-to-end ecosystem that drives value and understand which risks lie beyond your immediate organization.

There will be greater competition for tomorrow’s talent

Talent shortages, rising labor costs and an aging population are making it increasingly difficult for organizations to find and replace critical skills and experience. In a 2024 business impact survey, 18% of businesses with 10 or more employees reported that recruitment was difficult. These challenges not only hinder day-to-day operations but also impact longterm growth. Organizations need to get ahead by emphasizing the importance of strategic workforce planning and investing in upskilling.4