This year, PWC’s 22nd Annual Global CEO Survey found that threats that are top of mind for CEOs are less existential and more related to the cost of doing business.
This dramatic turnabout from last year’s exuberance, when the economy was more robust and the geopolitical environment more stable, is a result of threats that are perhaps less existential but more pressing than they have been in the past, with tangible effects that can be felt in real time. But now, the more immediate threats of overregulation, continued fallout from Brexit, global trade disputes and national policy uncertainties will have a more direct impact on the ease and ultimate success of doing business. Pervasive digital transformation also continues to increase risk, although innovations such as AI and robotics are creating operational efficiencies that help offset these challenges.
These new, government-related threats, including protectionism, populism and exchange rate volatility, are pushing CEOs to stick closer to home and turn inward to drive revenue growth. Indeed, 77% of leaders say they are planning to focus on operational efficiencies over the next 12 months, and 72% report relying on organic growth to drive revenue. As a result, they are adjusting their supply chain and sourcing strategies, shifting production to alternative territories and delaying capital expenditure and foreign direct investment.
The report identifies three key strategies to better manage your risks in this fast-paced environment.
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