- 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
CHICAGO, Sept. 29, 2021 /PRNewswire/ -- Aon plc (NYSE:
AON), a leading global professional services firm, today announced
the results of its recent survey, "A New Approach to Volatility:
The Importance of Making Better Decisions." More than 18 months
since the global outbreak of the COVID-19 pandemic, Aon surveyed
800 C-suite leaders and senior executives in the U.S., the EU, the
UK and Canada to reveal how
organizations are preparing for and responding to interconnected
risks. The survey follows Aon's research conducted in 2020, and
reveals that a year later, business leaders have a renewed
confidence in the economy and a greater appetite to embrace
calculated 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 Greg Case, Chief
Executive Officer of Aon. "As leaders look at the future of their
businesses in an increasingly volatile world, the pandemic has
reshaped their views of risk and sharpened the importance of making
better decisions. The past year has given leaders the insight they
need to understand the dynamics of long-tail risks and the need to
be better prepared, sparking optimism for what lies ahead."
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 Lori
Goltermann, Chief Executive Officer of Enterprise Clients at
Aon. "When speaking with CEOs and other leaders through our
Enterprise Client Group, these findings validate their experience
and reinforce our role in delivering solutions that give our
clients the clarity and confidence to make better decisions that
protect and grow their businesses."
The research was conducted in August and September 2021 through 800 online interviews with
C-suite and senior business leaders, spanning diverse industries
including technology, finance, production and service companies.
The survey builds upon the 2020 research, "Are You Prepared for the
Next Big Threat?" and adds a perspective from Canadian business
leaders. To view the 2021 results, please click here.
About Aon
Aon plc (NYSE: AON) exists to shape
decisions for the better — to protect and enrich the lives of
people around the world. Our colleagues provide our clients in over
120 countries with advice and solutions that give them the clarity
and confidence to make better decisions to protect and grow their
business.
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Media Contact
Nadine
Youssef
mediainquiries@aon.com
Toll-free (U.S., Canada and Puerto
Rico): +1 833 751 8114
International: +1 312 381 3024
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SOURCE Aon plc