This year’s report reflects the fact that today’s political risks have become everyone’s risk, with 93% of the companies surveyed this year reporting a political risk loss in the past 12 months, up from 35% in 2020.
The conflict in Ukraine, on top of its humanitarian impacts, has seriously damaged business interests, particularly among Western European respondents, 86% of whom reported a net negative financial impact of the conflict. The shock of war on the European continent has triggered a “paradigm shift” with the result that 100% of the companies we surveyed have enhanced their political risk management capabilities since February 2022.
But what, exactly, does this new climate look like?
Our WTW-Oxford Analytica Political Risk Survey 2023 analyses attitudes towards the latest geopolitical risks, including the impact of conflict, deglobalization, decoupling from China, and the energy crisis in the EU.
In keeping with the past several years of this study, this year’s research combines in-depth interviews with a broader survey. But in 2023, we approached a wider sample of companies compared to previous years, delivering a report that is more representative of differently sized businesses operating across geographic regions and industries – and reflecting the shift of political risk onto every organisation’s strategic-planning agenda.
WTW is the third largest insurance broker in the world, operating in more than 140 countries with a workforce of more than 45,000 employees. They offer their clients data-driven, insight-led solutions in the areas of people, risk, and capital.
Since 2017, WTW has partnered with Oxford Analytica to conduct an annual survey report of top global companies to understand the key geopolitical risks facing large corporations, the size of impact on their businesses, and approaches to managing these risks.