Clyde & Co has today published the second instalment of this year’s corporate risk radar. Part One, published in June, examined the ‘polycrisis’ leaders are facing in 2024, including prolonged economic volatility, geopolitical upheaval and the disruptive force of artificial intelligence. This second instalment outlines a series of solutions for business leaders facing this volatile risk landscape.
Key findings in the report released today include:
- 43% of leaders identified regulatory scrutiny as a growing threat to operations due to the volume of new initiatives and a perceived lack of consistency and clarity of these rules.
- People challenges are cited as the second largest high-impact risk to businesses, with 58% of leaders considering it a threat to multi-national operations.
- Climate change has fallen to ninth, from sixth in 2023, in the global risk hierarchy, reflecting the growing priority of other, more urgent, factors.
- 76% of leaders identified ‘cyber threats’ as the top technological risk, but for the first time ‘disruption caused by AI’ was highlighted as a high impact risk by 29% of respondents.
Eva-Maria Barosa, Partner, Clyde & Co, Munich said: “The risk conversation is now much more in depth than it was ten years ago. Every element of liability is on the table, being discussed up front. On arriving in a new country, companies now have detailed exit plans clearly articulating how they might exit a jurisdiction in years to come, if the risks are too great. Inevitably, there’s going to be a certain amount of ‘Keep calm and carry on’. Large investments can’t suddenly move the next day. It’s about understanding the risks and having clarity over the implications.”
Helen Bourne, Partner, Clyde & Co, London said: “With hybrid working and the reliance on remote technology, a significant proportion of cyber incidents are caused by human behaviour and misjudgements. The best way for organisations to counter this and build security and resilience is to train its people well enough to gain sufficient awareness of the likely threats in order that they can then detect and report them quickly and effectively.”
Roshanak Bassiri Gharb, Partner, Clyde & Co, Dubai said: “While international investments in the Middle East have slightly decreased this year compared to previous years, this has given a great advantage to Middle Eastern investors to invest more outbound, we have seen a huge increase in transactions with US and Latin American targets. To the Middle East, all the risks that are unfolding in other regions are opportunities as we are relatively untouched by the political turmoil in the US, France or the UK.”
The full report can be read here.
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