Does your Business Strategy consider the Top 5 Economic Risk Factors facing businesses in 2023?

On 28 March 2023, I have the privilege of being a Panel Member at APSCo’s Midlands Business Forum. The agenda is “The importance of flexing your business strategy to mirror changing economic and political landscapes”.

The Keynote speaker will be Santander’s Chief Economist Francis Haque, who will be reviewing the UK economy, business opportunities and challenges that lay ahead in 2023. I had the opportunity to speak with Francis last week and she explained that her presentation will focus on the big 4 macro economic factors - GDP, Inflation, Unemployment and Bank Rates. Then to help us understand how we need to flex our business strategy for 2023, she will examine the drive for Productivity, demands for Investment & Skill needs.

In preparation for the meeting, I have been examining the Economic and Political Risks that business will face in 2023. Focussing on the Economic Risks, I had a look at what the World Economic Forum (WEF) said the Top 5 Global Risks were for 2019:

1. Unemployment

2. Cyber Attacks

3. Energy Price Shock

4. Failure National Governance

5. Fiscal Crisis

Although some of these may not have had such a significant impact in 2019, most did materialise in the subsequent years due to the global Covid pandemic and the impacts of the war in Ukraine.

Whilst no one would have envisaged either of these events in 2019, those businesses that had a robust approach to strategic risk management had a better chance of successfully implementing their risk mitigation and business continuity plans to minimise the impact on their businesses.

Looking forward to 2023, WEF has highlighted the following as the Top 5 Economic Risks we will face:

1. Energy Supply Crisis

2. Cost of Living Crisis

3. Rising Inflation

4. Food Supply Crisis

5. Cyber Attacks on Critical Infrastructure

So as you give attention to your business strategy for 2023, thinking through the impact that these risks (and others) could have on your business will help you develop risk mitigation plans, enhance your preparedness and minimise the potential disruption.

Looking forward to meeting APSCo Members at the Forum on 28 March 2023 and hearing Francis’s insightful presentation.