Economic Threats Top Global Business Leaders’ Risk Concerns

Economic downturn, inflation and labor shortages top the list of concerns for business executives globally, according to the World Economic Forum’s 2024 Executive Opinion Survey (EOS), released by strategic partners Marsh McLennan and Zurich Insurance Group.

The annual survey, which collected over 11,000 responses on 34 risks from executives across 121 economies, also highlights concerns about the adverse outcomes of artificial intelligence (AI) technologies and the spread of misinformation.

Among U.S. business leaders, the top five near-term risks in order were:

• Economic downturn
• Inflation
• Adverse outcomes of AI technologies
• Food supply shortage
• Extreme weather

Across all respondents globally, the top concerns were similar: economic downturn, inflation, labor shortages, poverty and inequality and extreme weather events.

Record levels of inflation, a widespread cost-of-living crisis, energy supply challenges and extreme weather events have driven a consistent set of concerns among business leaders across regions, according to the report. The threat of recession, mounting public and household debts and labor shortages feature heavily among the top five risks globally.

The survey also highlights the impact of environmental risks, with severe flooding, wildfires, high temperatures and elevated windstorm activity leading to concerns about water and food supply shortages, the report noted.

“Extreme weather events featured in the G20’s top five risks, as the fifth biggest risk. This follows a year in which many G20 countries – including Brazil, Germany, Indonesia and the U.S. – experienced severe flooding, above-average rainfall, wildfires, extreme heat or elevated hurricane activity,” the report stated.

Technological risks, including misinformation and adverse outcomes of AI technologies, were less prominent in the rankings overall.

“However, executives in several high-income countries placed ‘misinformation and disinformation’ and ‘adverse outcomes of artificial intelligence technologies’ in their top five, which indicates that these are expected to further complicate the risk landscape in the near-term,” the report’s authors noted.

The EOS findings underscore the complex and interconnected risk landscape that businesses face today.

“It’s no surprise that economic uncertainty and inflation are at the forefront of concerns for U.S. business leaders given the tensions and concerns we are seeing both domestically related to potential tariff regimes as well as ongoing geopolitical unrest,” commented Reid Sawyer, head of emerging risks group and U.S. cyber risk consulting for Marsh.

“Together, the top five risks—ranging from economic downturn to food scarcity—underscore a deeper sense of general uncertainty on multiple fronts. This interconnectedness is particularly alarming, as any one of these risks has the potential to trigger another, creating a complex web of challenges that businesses must navigate,” Sawyer said.

“As businesses navigate an increasingly complex risk landscape, it is essential to broaden the focus beyond economic risks,” stated Peter Giger, group chief risk officer for Zurich Insurance.

“2024 is on track to be the warmest year on record, and so the escalating impacts of climate change must not be ignored. The rapid advancement of emerging technologies will help to overcome the growing challenges, but they also pose new threats. By proactively identifying and mitigating these diverse risks, businesses can build resilience and thrive in the face of uncertainty,” Giger added.

View the full EOS results here. &