Businesses face the age of disruption
Business leaders are facing unprecedented disruption and uncertainty, according to a consultancy survey.
The survey reports that nine out of ten organisations have reported multiple major disruptions. And while 70 per cent are confident in their ability to recover from disruptions, many lack the foundational resilience for success.
The top five reported disruptions include Covid-19, employee retention and recruitment, supply chain, technology disruption or failure, and cyber attack.
PwC’s biannual Global Crisis and Resilience Survey reveals that organisations and business leaders overestimate their resilience — despite operating in an age of disruption.
Data from 1,812 respondents worldwide provides insights into how business leaders are preparing for, and responding to, this new world. Asked where resilience falls on the list of corporate priorities, nine in ten (89 per cent) of respondents said resilience is one of their most important strategic organisational priorities — indicating that organisations are creating a resilience revolution.
After a tumultuous start to the decade, it is unsurprising that nine in ten (91 per cent) of organisations report they have experienced at least one disruption other than the pandemic. On average, organisations experienced 3½ disruptions in the past two years. Three quarters (76 per cent) said their most serious disruption had a medium-to-high impact on operations — disrupting critical business processes and services and causing downstream financial and reputational issues.
Chris Mills, director, advisory, PwC Bermuda, said: “As business leaders face an unprecedented level of disruption and uncertainty in today’s environment, resilience has become one of the most vital strategic priorities in the corporate world.
“To build a trusted and agile organisation, it is vital that business leaders invest in resilience across functions and people, and focus on an integrated approach, supported by technology to enable a panoramic view of their risk and resilience landscape.”
Excluding the pandemic, supply-chain disruptions had the greatest impact on organisations monetary or otherwise, and they have doubled since 2019, according to the report.
More than half (60 per cent) of organisations whose most serious disruption was supply-chain related, were most concerned about experiencing a similar disruption again.
While 70 per cent of business leaders express confidence in their ability to recover from various disruptions, the survey data shows that many organisations lack the foundational elements of resilience they need to be successful.
This confidence gap puts organisations at risk of being exposed — particularly when the disruption spotlight is solely on them, as opposed to broader global or sector challenges.