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Political Risk and Technology are Front of Mind for Global Business ExecutivesWASHINGTON, July 11, 2017 /PRNewswire/ -- Global executives expect economic and financial volatility will be higher in the next 12 months than it was in the past year, according to the 2017 Views from the C-Suite published by A.T. Kearney's Global Business Policy Council. More than 90% of the C-suite executives and board members surveyed are making or are considering making changes in their supply chains and international footprints due to the current political and economic environment. However, volatility brings both opportunities and challenges from a business perspective. See the full study at www.atkearney.com/VCS. On the "challenges" side, a number of issues are of special concern to business leaders. Rising political risk is at the top of their list. A close second is worsening tax and regulatory policies—the second year in row that global executives have identified this as a top challenge. Relatedly, roughly three-quarters of executives believe that populist and protectionist policies will gain strength in democracies around the world over the next year. Executives believe that trade is the most likely feature of globalization under threat from rising populism and protectionism. For the second consecutive year, the C-suite survey maintained a focus on the role of technology on both the "opportunities" and "challenges" sides. Executives emphasize the importance of technology in their biggest operational focus over the next 12 months. The principal operating risk they identify is cybersecurity, with 43% of executives pointing to this as their biggest concern; and 85% of global executives believe cyberattacks will become more frequent and costly over the next 12 months. And while 33% of those surveyed view technology adoption as a top challenge, 38% see it as a top opportunity. In addition, 78% of executives believe technological advancements will lead to increased global productivity growth in the coming year. "The degree to which technology and political risk dominate this year's results is striking. Technology continues to represent both opportunity and challenge," says Erik Peterson, managing director of the Global Business Policy Council and co-author of the study. "At the same time, global executives are paying much more attention to government actions and identifying risks stemming from geopolitical tensions and domestic regulatory and tax policy changes." Fully 69% of global C-suite executives reported that government policies have a greater influence on their companies' overall decision making. And almost all executives say they are placing greater importance on employing strategic foresight techniques to manage risk. Business leaders are thus "adapting to disruption" in the current global environment. "These results suggest that the all-too-visible hand of political risk is increasingly driving economic outcomes and business decisions," says coauthor Paul Laudicina, Chairman of A.T. Kearney's Global Business Policy Council and Partner and Chairman Emeritus, A.T. Kearney. "I would advise business leaders worried about the future to take action to manage risk. The high level of uncertainty in the global operaing environment means that increased agility and a heightened awareness of both risks and opportunities are keys to success." The Global Business Policy Council offers concrete recommendations for businesses wondering how best to thrive in the current global operating environment:
About the Global Business Policy Council To learn more about the Global Business Policy Council, please visit www.atkearney.com/gbpc. To learn more about A.T. Kearney, please visit www.atkearney.com. About Views from the C-Suite The participating companies are headquartered in 23 different countries in all regions of the world. For the purposes of reporting survey results, respondents are aggregated into three regions: Americas, Asia (which also includes a few respondents from Africa), and Europe. About 40 percent of respondents are based in the Americas, and about 30 percent each are at corporations headquartered in Asia and in Europe. Survey respondents also represent a wide array of sectors, which we have grouped into three mega-sectors: industry (primary goods, aerospace and defense, infrastructure and construction, telecommunications and utilities, heavy industry, and light industry), services (transportation, healthcare and pharmaceuticals, wholesale and retail, financial services, and nonfinancial services), and information technology (including hardware, software, and IT-related services). Executives at service-sector firms account for 47 percent of the survey respondents, 28 percent work at industry-sector firms, and 19 percent at IT firms. For past editions of Views from the C-Suite, please go to: https://www.atkearney.com/VCS Media Contact
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