The KPMG 2023 CEO Outlook reveals geopolitics and political uncertainty have become the leading perceived risk this year for senior executives — concerns that didn't even make the top five in the 2022 survey.
While confidence in the global economic outlook over the next three years remains broadly unchanged since last year's survey (73 percent compared to 71 percent last year), there has been a significant shift across CEOs' views on what constitutes a risk to their business.
Over three quarters of CEOs (77 percent) say rising interest rates and tightening monetary policies could risk or prolong the threat of a global recession. Meanwhile, over three in four CEOs (77 percent) believe that cost of living pressures are likely to negatively impact their organization's prosperity over the next three years.
The persistent flux in global politics, trade dynamics and international relations has compelled CEOs to reassess their strategic priorities and demonstrate resilience in navigating the intricate interplay of global political forces.
"Business uncertainties offer opportunities for organizations to adapt and strengthen strategies", says Charoen Phosamritlert, Chief Executive Officer, KPMG in Thailand, Myanmar and Laos. "In response to the geopolitical climate, businesses need adaptability, supply chain reconfiguration, and diversification. In terms of future working trends, hybrid working will likely continue with a collaborative culture. For ESG, companies should position it as a driver for value creation and stay updated on shifting regulations. Regarding AI ethical concerns, organizations must follow global regulations for generative AI, prioritizing privacy, data security, and legal compliance for responsible use and maximum value creation while maintaining ethics.
Source: KPMG in Thailand