Organisations have been put into ‘perma-crisis’ mode with global risks from geopolitics to the cost of living threatening productivity going into 2023, according to a new report from International SOS.
The Risk Outlook 2023, and the updated global risk map published by the organisation said businesses across the world face significant risks and greater challenges in protecting employees working in or travelling to countries with elevated threat levels.
The report includes the findings of a survey of 1,200 senior risk professionals across 108 countries and revealed almost half of experts (48%) predict cost-of-living pressures will be a major driver of productivity loss domestically during the next 12 months.
The survey also revealed 42% of experts predict business travellers will be less productive because of geopolitical risks in 2023 and 33% see civil unrest impacting business travel.
Adjusting to perma-crisis mode requires more support and training for crisis management teams, which risk burnout.
International SOS said Russia president Vladimir Putin’s invasion of Ukraine last year put geopolitics firmly back on the corporate risk agenda. But in 2023 it expects geopolitical volatility to spread beyond Russia-Ukraine as tensions increase between Russia and the west, and competition plays out between the US and China.
Social unrest will also be a major item on the c-suite agenda in 2023, International SOS said, affecting organisations and employees in multiple ways and from multiple causes.
Listing five trends for the year ahead, International SOS predicts a new era for mental health at work, more support for the travelling workforce, greater use of accurate and timely intelligence in decision-making, alongside adjusting to the perma-crisis and increasing health risks from climate change and other factors.
International SOS said the impact of climate change could reach beyond extreme weather events. In particular, changes in climate could accelerate the emergence of infectious diseases, which is on the radar for just 25% of organisations planning for future pandemics. M