More than two-thirds of crisis managers believe the world will become a riskier place to do business in the next three years
- 64 percent of crisis managers around the world believe that corporate risk escalated in 2016
- 73 percent report crises that could have significantly harmed the reputation of their firm in 2016
- Cyberinsecurity was the most frequent source of risk, accounting for 53 percent of major crises that threatened the firm’s reputation
- 67 percent of crisis managers believe the world will become an even riskier place to do business in the next three years
2016: The year in crisis, a report by The Economist Intelligence Unit (EIU) and sponsored by FTI Consulting, is based on a global survey of 537 experienced managers of corporate crises. More than 50 percent of respondents were members of the board of directors or C-suite.
Executives across industries say that corporate risk has grown – for example, 71 percent of respondents in IT, 66 percent of those in financial services and 64 percent of energy executives believe risk escalated in 2016. When asked to name the crisis that had the greatest impact on their firms’ reputation, 27 percent reported cyberattacks that targeted sensitive data, 13 percent identified cyber theft and 13 percent cited hacking that released sensitive information. This totaled 53 percent of all attacks, making cyberattacks larger than all other crisis types combined.
Social media is seen as having a strong influence on how crises unfold. Seventy percent of the executives surveyed believe that social media amplifies corporate crises, and 73 percent believe it accelerates the pace of crisis management.
Looking ahead, executives identified the factors they expect to have the greatest influence on crises over the next three years. Cyber risk was cited most often (by 36 percent of respondents), while political risks such as abrupt policy changes (32 percent) and income inequality (31 percent) ranked second and third.
West Coghlan, the editor of the report, said:
“Firms are facing a perfect storm of risk. Standard risks – product recalls, regulatory investigations, environmental accidents – continue to create crises. Many executives believe there is increased risk in the political sphere. Cyberattacks are seen as a major source of future risk. Add them together and you have a perception that the world is becoming an increasingly risky place to do business.”
To download the report, click here.
About The Economist Intelligence Unit
We deliver vital business intelligence to executives the world over. With access to over 650 expert analysts and editors across 200 countries worldwide, underpinned by an unrivaled in-house survey panel that bolsters the qualitative and quantitative analysis, we uncover novel and forward-looking perspectives. We apply the same rigor of our editorial heritage to design content that goes beyond the expected. And our reputation for authority and independence ensures access to elite contributors in every market in the world, providing truly distinctive viewpoints. More information can be found at https://www.eiuperspectives.economist.com or https://twitter.com/EIUperspectives.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 4,600 employees located in 29 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The company generated $1.78 billion in revenues during fiscal year 2015. For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.
