What Canadian business leaders see as their biggest risks

Canadian business leaders see their top four near-term risks as economic downturn, the labour and talent shortage, inflation and societal wealth and income concerns (i.e., poverty and inequality), according to new survey results by the World Economic Forum and Marsh McLennan. 

Though economic risks top the list, technological advancement — particularly concerns about adverse outcomes from AI technologies, and misinformation and disinformation — tie as the fifth top risks across business sectors in Canada.  

“Canadian business leaders are facing risks that are more interconnected, volatile and complex than ever before,” Sarah Robson, president and CEO, Canada, for Marsh McLennan commented on the Executive Opinion Survey.  

“In my conversations with Canadian CEOs and boards, they are most concerned about the persistent threats of recession, elevated inflation and technological risks, including the implications of artificial intelligence,” Robson says.  

“To successfully manage these risks, businesses need to more holistically understand and prepare for their potential impact on their operations and growth.” 

With the threat, or perceived threat, of a recession still dominating public concern, economic risks rank high in the survey results. 

In fact, economic risks overshadow climate and cyber risks as the top business concern globally. 

Business leaders in G20 countries cite the same top three risks over the near term (roughly the next two years) as Canada. 

But “as businesses navigate an increasingly complex risk landscape, it is essential to broaden the focus beyond economic risks,” Peter Giger, group chief risk officer, Zurich Insurance Group, says in the release. “2024 is on track to be the warmest year on record, and so the escalating impacts of climate change must not be ignored.” 

Plus, technological advancements can help overcome some business challenges related to climate change — for example, better wildfire and flood modelling — but they also bring with them some new threats, as evinced by the survey results.  

“By proactively identifying and mitigating these diverse risks, businesses can build resilience and thrive in the face of uncertainty,” Giger says. “Addressing these issues head-on will not only safeguard the operations but also position companies for sustainable success in the future.” 

Feature image by iStock.com/Suriya Phosri