Top Risks 2023: The bottom line for business

We're mostly through the pandemic, but business strategies are likely to continue being impacted. Geopolitical risks, which tend to be highly interconnected and contagious, are setting off a chain of risks and repercussions businesses are vulnerable to, from higher energy prices to inflationary pressures and tightening financial conditions.

How might these risks affect your business — and what can you do about it?

Eurasia Group warned in its annual forecast of political risks that the year will "remain in the depths of a geopolitical recession, with the risks this year being the most dangerous we have encountered in the last 25 years". In this report, KPMG takes a closer look at the top risks for 2023 and explores risk management approaches that can help mitigate their impact on your business. 

As the world comes to terms with increasing geopolitcal volatility and market uncertainty, business leaders are finding themselves caught in a constellation of challenges that look unlikely to dissipate in the near future. The interlinked nature of the modern economy is further exacerbating the dilemma, proving that fluid and flexible coordination of mutual interest and action will be necessary to address pertinent issues like increased protectionism, high inflation and social inequities. In an ever-evolving economic climate, looking beyond traditional metrics of risks can help companies make sense of the trends shaping the future and strategise their approaches more effectively.

In this report, we examine Eurasia Group's Top Risk 2023 annual forecast to make sense of the top three bottom line risks for businesses and highlight key strategies that organisations can adopt to navigate the future. Using the dynamic risk assesment framework, we take a closer look at key factors like velocity (the speed at which risk impact will be felt) and contagion (the far-reaching consequences of a risk) to understand the wider implications of global risks facing organisations today.