- New research shows nearly 90 percent of executives are expecting business conditions a year from now to be stronger
- Majority of respondents agree that the pandemic exposed new vulnerabilities, driving willingness to invest in preparation for other long-tail risks
"We are at an inflection point where businesses are not only focused on overcoming the current challenges we are facing, but shifting to think about other long-tail risks and how to prepare for them," said
Additional findings from the survey include:
- A majority predict significant growth: About four in five leaders (79 percent) estimate growth in the year ahead and 40 percent expect double-digit revenue growth. Among the 38 percent of leaders who indicated they were "very prepared" to deal with the pandemic, 55 percent estimate double-digit revenue growth.
- Preparedness paid off, but the C-suite could exhibit a confidence bias: The research revealed a disconnect between C-suite executives setting the strategy and the people on the ground executing that strategy. Only 12 percent of C-suite leadership felt their company was unprepared for the pandemic, compared to 22 percent of senior executives.
- Successful leaders are risk-aware, not risk-averse: Most leaders (80 percent) say the pandemic experience has increased their companies' appetite to take on more risk and make investments in order to build resiliency for the future. Executives are keen to take on new risks relevant to financing and capital investment, with 55 percent of respondents expressing interest in raising new capital, financing or debt and 50 percent of respondents open to investing in new technologies.
- Failure to prepare and act weakens companies significantly: Companies who were weakened by the pandemic - 32 percent of those surveyed - struggled to integrate risk assessment into decision-making and to focus on the interconnectedness of varying risks. Companies that were unprepared and subsequently weakened by the pandemic fell behind their successful counterparts in two key areas: access to financial protection against losses and the ability to keep employees safe and productive throughout the pandemic. Conversely, strong companies took a holistic, integrated view to pandemic response and reported risk integration as key to their approach to disarming evolving risks.
- Stronger companies value data, analysis and expertise: Surveyed C-suite leaders and senior executives place more value on models, analytics or data science tools - 61 percent - to ensure their company makes better decisions. Among stronger companies, 61 percent also state they are very confident they have the ability to analyze available data and information to make sound decisions going forward.
"Our research shows that executives are confident in the future and have prioritized the need to be better prepared for risk in the wake of the pandemic," said
The research was conducted in August and
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