Directors' Outlook: Business resilience and risk management in 2023
Economic downturn, rising interest rates, ongoing geopolitical tensions and shifting regulatory considerations will make this year a tough one for businesses. Preparedness will be key to ensuring business resilience. We outline the key issues and how directors can manage risk in 2023.
2023 is set to be a difficult year for businesses and directors will play a pivotal role in steering their companies through the challenges that lay ahead.
In this feature, we explain some of the key risks facing directors this year and the practical steps they can take to manage them.
Insolvency will be an ever-present risk for many businesses in 2023. Either directly, or for suppliers, customers, or competitors. Rising energy costs and the increasing price of materials will put an added squeeze on cashflow, meaning that directors will need to carefully monitor financial performance throughout the year to ensure business survival.
Two-thirds (65%) of mid-sized and large companies reported cyber security breaches in 2022. As more business operations are digitalised and supply chain risks become apparent, this figure is only likely to increase this year.
The conflict in Ukraine, high inflation and an international recession will continue to affect supply chains this year. Businesses must be ready to deal with these shocks if they want to be successful in the global economy.
ESG was once a fringe issue. But no longer. A company's impact on the wider world is now inseparable from its core business. We take you some of the ESG trends we expect in 2023.
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