The nature of crises that companies are facing, their ability to monitor and plan for risk, and the way in which they respond to crisis scenarios is rapidly changing in an ever-shifting financial, social and regulatory world. As a result, G20 businesses are having to be increasingly proactive in their public discourse and engagement, and are employing new crisis mitigation techniques to increase resilience.
Our data reveals a varying degree of confidence amongst companies in their ability to plan and prepare for future crisis scenarios.
Whilst 97% of G20 companies claim to be taking actions or investments over the next 12 months to prepare for future crises, three quarters of G20 business leaders still believe that their company struggles to adequately plan for an increasing number of crisis scenarios. As a result, a growing number of companies (39%) are increasingly employing AI analytics to monitor for risk scenarios to ensure better preparedness.
In light of the global pandemic, G20 companies expect post-pandemic employee wellbeing to be the greatest area of media scrutiny over the next 12 months, with over a third of companies expecting scrutiny in this area. Data privacy, ESG, cybersecurity, business leadership conduct, tax, aid, financial crime and litigation are the other key areas in which G20 companies expect media scrutiny over the next 12 months.
Whereas previously companies may have solely reacted to crises and stakeholder concerns, companies are increasingly trying to proactively influence the narrative around key issues such as employee wellbeing, privacy and ESG. As a result, more than four in five companies (82%) have said they should be engaging with pressing social or political discourse.
A wide range of stakeholder groups continue to influence the strategic direction of G20 companies, although there has been a degree of shift around which groups influence the most. Customers continue to be a major influence on the strategic direction companies take, along with investors and shareholders in second and third place respectively this year. Along with civil society, media and lenders/creditors are the groups least likely to influence the strategic direction of G20 companies.
G20 companies are facing an increasingly diverse range of crisis scenarios, and by extension increased stakeholder demands. It is those G20 companies that are resiliently prepared – through the adoption of AI analytics, proactively engagement with social and political discourse, and by investing in crisis preparations - that will be best placed to weather future storms.
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