Risk Decisions Better Prepare Leaders
Leaders who are making better decisions about risks are better prepared to navigate through and succeed during highly volatile times and economic uncertainty, says a survey from Aon plc. Its ‘2022 Executive Risk Survey’ – ‘Making Better Decisions in Uncertain Times’ – found 79 per cent of business leaders expect a recession this year. A highly select group of leaders – just 35 per cent – report feeling very prepared for that recession. Business leaders who are very prepared for a recession share fundamental attitudes toward preparedness. Sixty-two per cent of very prepared leaders agree that their company's appetite to address risk has increased in response to the current macroeconomic conditions. For companies that feel very prepared heading into a recession, addressing risk isn't a choice – it's a question of survival. Very prepared leaders are nearly twice as likely to say they value the counsel of an external advisor to improve their company's ability to make good decisions and deal with risk. Confident leaders are also resisting the urge to slow hiring despite challenging economic conditions. In fact, 42 per cent are spending a great deal of time on the issue of attracting and retaining top executive talent, compared to just 22 per cent of other leaders.