- Eighty-six percent say Trade, Technology, Weather and Workforce
trends are important to their organizations
- More confident decision makers find access to comprehensive
data and analytics critical to addressing risk and people
issues
- Decision makers are increasingly concerned about weather and
climate risks, but majority are slow to make significant
investments
DUBLIN, July 17, 2024 /PRNewswire/ -- Aon plc (NYSE:
AON), a leading global professional services firm, today announced
the findings of its inaugural Business Decision Maker Survey, which
found that 72 percent of business decision makers feel their
businesses aren't moving fast enough to address risks associated
with global megatrends across Trade, Technology, Weather and
Workforce.
The survey, which gathered insights from C-suite and business
executives in North America, UK
and Europe, found that 86 percent
believe it is important to address the challenges and opportunities
presented by these megatrends. However, it is getting harder to
make the right decisions amid their growing complexity and
volatility.
"These findings confirm what we're hearing from our clients
every day – the world is more volatile and complex, creating
uncertainty and need for new solutions across our global economy,"
said Aon CEO Greg Case. "Business
decision makers recognize the enormity of the challenges presented
by the megatrends of Trade, Technology, Weather and Workforce and
they are looking for actionable insights and innovative tools to
more quickly address critical risk and people issues."
KEY MEGATREND FINDINGS
The majority of the survey's
respondents identified all four megatrends as extremely important
to their organizations. However, the survey also revealed that
Trade, Technology and Workforce ranked as bigger priorities (with
80-plus percent of the respondents rating them as "extremely
important") while 70 percent of those surveyed ranked Weather as a
top-priority risk. Other highlights of the survey include:
- Trade: Business decision makers say that risks linked to
trade are some of their top concerns — both physical and financial.
The survey results highlight that supply chain risks are top of
mind in the C-suite, with 74 percent of business decision makers
saying that their responsibility for supply chain or distribution
functions has increased over the last year. On top of that,
economic and financial concerns remain a focus for business
decision makers, with exchange rate fluctuations and commodity
price risk among the top three trade risks.
- Technology: While advancements in AI and data and
analytics offer businesses a significant competitive edge, they
also generate new and evolving risks. Business decision makers
recognize the importance of fully analyzing and assessing risks
associated with technology, with 63 percent reporting that they
have measured the ROI of cyber security initiatives and 61 percent
auditing IT suppliers to manage third-party risks and IT sprawl in
the last year.
- Weather: Extreme weather and a changing climate are
impacting many of the risks businesses face today. Sixty-six
percent of business decision makers understand that climate issues
raise new risks and vulnerabilities that require a significant
change in how businesses think about the future. However, compared
with the other three megatrends, decision makers are slower to act
on weather risk. While 59 percent of those surveyed are quantifying
the financial impact of extreme weather, 72 percent are carrying
out the same exercise for cyber.
- Workforce: Organizations are increasingly balancing
costs with the ability to provide a compelling employee experience.
Rising workforce costs are among the largest challenges business
decision makers face, the survey finds, with 57 percent saying
their company has materially changed benefit or health care
offerings for employees to improve affordability and improve
outcome. Business decision makers also ranked adjusting their
talent strategies to account for changes in technology as their top
workforce concern. Meanwhile, 52 percent of decision makers have
taken action over the last year in reskilling or upskilling workers
for the new demands of green technology and renewable projects and
45 percent say that climate issues are helping create a
mission-driven culture that attracts and retains talent.
The survey also revealed key differences in risk preparedness
between organizations in the U.S. and those in Europe and the UK. For example, 48 percent of
U.S. business decision makers select supply chain disruption as a
top Trade risk, compared with 27 percent in the EU and UK.
Meanwhile, 44 percent of decision makers in the EU and UK see war
and political instability as a top Trade risk, compared with 28
percent in the U.S.
Regarding Weather risks, 47 percent of business decision makers
in Europe and the UK are
prioritizing decarbonization and clean energy, compared with only a
third (33 percent) in the U.S. However, U.S. leaders are paying
more attention to workforce safety related to heatwaves (45 percent
in the U.S., compared to 40 percent in the EU and UK) and property
damage caused by natural disasters (37 percent in the U.S.,
compared to 33 percent in the EU and UK).
THE NEED FOR BETTER DECISIONS
Building on the results
of the firm's recently released 2024 Client Trends Report: Better
Decisions in Trade, Technology, Weather and Workforce, Aon's
Business Decision Maker Survey found that as risks grow more
interconnected, business decision makers feel pressure to take on
more responsibility to manage the challenges found within these
trends such as artificial intelligence and climate risk.
Responding to these megatrends risks is made more difficult by
continued concern about macroeconomic and financial conditions.
Seventy-seven percent of business decision makers are concerned
about interest rate fluctuations and 73 percent are concerned about
asset price volatility impacting their business in the next
year.
"It's clear that without taking action, business decision makers
will not be able to effectively manage their exposures to these
megatrends over the next year," said Aon President Eric Andersen. "As the megatrends grow more
interconnected, businesses which adopt a comprehensive,
data-driven, forward-looking approach to risk management will more
confidently address challenges and seize opportunities amid
uncertainty."
Data and analytics play a vital role in building executive
confidence amid this increased pressure. Of those business decision
makers who feel "very confident" their company will be able to
effectively manage risk exposures over the next year, 60 percent
say they have the data and analytics they need to address
challenges, while just 41 percent of less confident decision makers
feel the same. Modeling climate and weather risks is a particular
concern, with only 39 percent of decision makers very confident
they have accurate data, analytics and insights to protect their
businesses.
Confident business decision makers also benefit from effectively
sizing and pricing risk exposures and event scenarios. Fifty-nine
percent of decision makers who are "very confident" have quantified
the profit-and-loss of supply chain, cyber risk, and
weather-related scenarios and events in the last year, compared to
just 36 percent of leaders less confident they are effectively
managing risk exposures.
Aon's inaugural Business Decision Maker Survey was conducted
through online interviews with 812 business decision makers
between April 24 and May 5, 2024.
Respondents included C-suite executives, senior executives, and
executives of companies with more than 500 employees in
the United States, Canada, United
Kingdom, Germany,
France, Italy and Spain. Additional information about the
Business Decision Maker Survey can be found here.
About Aon
Aon plc (NYSE: AON) exists to shape
decisions for the better — to protect and enrich the lives of
people around the world. Through actionable analytic insight,
globally integrated Risk Capital and Human Capital expertise, and
locally relevant solutions, our colleagues provide clients in over
120 countries and sovereignties with the clarity and confidence to
make better risk and people decisions that protect and grow their
businesses.
Follow Aon on LinkedIn, X, Facebook and
Instagram. Stay up-to-date by visiting Aon's newsroom and
sign up for news alerts here.
Media Contact
mediainquiries@aon.com
Toll-free (U.S., Canada and
Puerto Rico): +1 833 751 8114
International: +1 312 381 3024
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