BDO's Global Risk Landscape Report 2025 indicates that business leaders are increasingly risk-averse, with 69% of executives prioritizing risk minimization. The report reveals a drop in proactive risk management from 19% to 7% among C-suite leaders. Top concerns include regulatory risks, supply chain issues, talent management, geopolitical instability, environmental factors, and cybersecurity threats. Despite growing regulatory oversight, a significant percentage of executives do not find it effective at reducing risk, leading to frustrations regarding the costs associated with compliance and a defensive leadership approach that potentially stunts growth.
The risk landscape for businesses has been in flux for more than a decade and shows no sign of stabilising. Faced with this relentless volatility, some business leaders are being too hesitant to take decisions and are paralysed by fear.
While regulatory oversight is increasing, only 39% of respondents believe it significantly reduces company risk. 57% see it as only 'somewhat helpful', with many CEOs expressing frustration over compliance costs.
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