Our modern world is unpredictable. Known threats, like climate change and pandemics, sit alongside emerging challenges – data security, supply chain disruption, the rise of intangible assets and the widening health/wealth gap. The COVID-19 pandemic brought this clearly into view.
That is why we surveyed 800 C-suite leaders and senior executives in August 2020* – nine months into the global COVID-19 pandemic – to better understand how this unprecedented event impacted their businesses and altered their decision making process, particularly as it related to the risks they were facing.
The findings indicated that companies who have best navigated the challenges caused by the pandemic were those that had prepared for all threats, watched the competition and didn’t overreact. These themes served as initial benchmarks for the challenges they were facing and how they were preparing for whatever would be next.
Nearly a year later, we surveyed a similar group of senior leaders in the U.S., the European Union (EU) and the UK, including additional senior leaders in Canada, to find out what has changed, what has remained the same, what they think about the future and, as a result, how they approach making better decisions.
This is what we found.
* Aon commissioned a survey of C-suite leaders and senior executives in the U.S., the EU and the UK. The 800 respondents represented companies with at least 500 employees.
Approach to This Research
OVERVIEW
Businesses that survived the first 18+ months of the pandemic are ready to thrive. C-suite leaders and senior executives surveyed in September 2021 are optimistic about the economy and the future of their company, with 81 percent of those surveyed in North America and Europe rating the economy as excellent or good. Nearly 90 percent expect business conditions to be even stronger a year from now.
These sentiments are supported by strong self-reported performance numbers for 2021. Approximately 81 percent of respondents report that revenue estimations increased in the first half of 2021. Of that audience, approximately 40 percent estimate that revenue is up by double digits in the same time period.
Resilience Turns to Optimism
Economic Outlook
81% of executives rate the economy as excellent or good
81%
Overview
Economic Outlook
Pandemic Preparedness
Appetite for Risk
Future Success
Current widespread optimism among surveyed C-suite leaders and senior executives is rooted in year-over-year revenue growth and their perception that the economic impact of the pandemic was less harsh than expected. When asked to assess company preparedness at the onset of the pandemic, 84 percent of respondents said their companies were prepared for COVID-19, an 8 percent increase from 2020 responses. Most surveyed also acknowledged that stronger analytic models on COVID-19 spread and vaccination rates as well as nimbler employee communications processes and technology would have boosted preparedness.
When breaking down confidence levels by industry, finance and technology companies self-reported the highest levels of preparedness, while the service industry expressed looming uncertainty. A similar dichotomy emerged between C-suite leadership and senior executives: only 12 percent of C-suite leadership felt their company was unprepared for the pandemic, compared to 22 percent of executives. Companies that were unprepared and subsequently weakened by the pandemic fell behind their successful counterparts in two key areas: access to financial protection against losses and the ability to keep employees safe and productive throughout the pandemic.
Emerging Stronger While Looking Forward
Pandemic Preparedness
Finance
Tech
Production
Service
C-Level / Partner
Senior Executive / Executive
Very Prepared
Somewhat Prepared
A Holistic, Integrated View of Risk
Appetite for Risk
COVID-19 has brought a new perspective to risk - and how to prepare for it; a reminder that what was once viewed as a possibility is, indeed, a reality. Surveyed C-suite leaders and senior executives are now more aware of emerging threats, and this experience has spurred an increased appetite for investment. They are keenest to take on new risks relevant to financing and capital investment, with 55 percent of respondents expressing interest in raising new capital, financing or debt and 50 percent of respondents open to investing in new technologies.
While the majority of companies are embracing confidence in their company’s handling of the pandemic and a new tolerance for risk, 32 percent of respondents fear the pandemic has weakened their business. Despite one third of companies feeling weakened by the pandemic, 80 percent of all businesses surveyed are willing to take on more risk.
Those surveyed representing the 32 percent of companies who were subsequently weakened by the pandemic struggled to integrate risk assessment into decision-making and failed to focus on the interconnectedness of varying risks. Conversely, strong companies took a holistic, integrated view to pandemic response and reported risk integration as key to their approach to disarming evolving risks.
Pockets of Uncertainty Driven by the Service Sector
See Pandemic Preparedness
See Appetite for Risk
See Better Decision Making
Lessons Learned from the COVID-19 Pandemic
Future Success
Leaders and companies have emerged from the pandemic with the recognition that reaping the benefits of a strong economy requires embracing innovation and changing their approach to risk. Fundamentally, they are seeking support on how to best integrate data and expertise to make better decisions for their companies.
Executives recognize risk as a necessary means to future resilience
Across industries, surveyed C-suite leaders and senior executives are reporting a greater willingness to take on risk and make investments in order to build resiliency for the future.
Organizations that fared better during the pandemic took a holistic approach to preparing for risks
In a world where risks are more intertwined, stronger companies are placing increased value on an approach to risk management that considers the interconnectedness of potential threats and integrates those factors into all decision making.
Stronger companies value analysis and expertise alongside data
Surveyed C-suite leaders and senior executives are looking beyond the numbers to garner actionable insights from the data, evaluating analysis and advice from both internal and external expertise.
Featured Insights
COVID-19 Pulse Survey: U.S. Vaccination Trends
As the pandemic continues to evolve and vaccinations are more accessible in the U.S., organizations are facing tough decisions. This survey, featuring submissions from nearly 600 participants, focuses on answering the questions many clients have been asking – such as, what are others doing with respect to making COVID-19 vaccination mandatory either to return to the office or as a condition of employment? What about exceptions, masks and social distancing?
Evaluating the COVID-19 Pandemic and Future Threats
To better understand how business leaders have weathered the COVID-19 pandemic and view future risk, Aon commissioned a survey of 800 C-suite leaders and senior executives in the U.S., the EU and the UK. As traumatic as the COVID-19 pandemic has been, the business leaders surveyed in August 2020 believe it was not the only disruption they’d had to manage. Those most prepared, however, were those already investing resources into evaluating future threats.
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What We Do: Clarity and Confidence to Make Better Decisions
Our advanced analytics, advice and solutions give our clients the clarity and confidence to make better decisions to protect and grow their business. Through navigating new forms of volatility, building a resilient workforce, rethinking access to capital and addressing the underserved, Aon colleagues enable and empower our clients to make better decisions.
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A New Approach to Volatility: The Importance of Making Better Decisions
After 18 months of living and working during the COVID-19 pandemic, Aon commissioned a survey in 2021 of 800 C-suite leaders and senior executives in the U.S., the EU, the UK and Canada to reveal how organizations are preparing for and responding to interconnected risks. We found that business executives and companies have economic optimism, an appetite for risk and a commitment to seeking better data and expertise to help them make better decisions.
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Explore our findings
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Better Decision Making
Nearly 90% of executives expect business conditions to strengthen in one year
90%
Not Prepared
Looking back, how prepared would you say your company was to deal with the coronavirus pandemic?
Industry Preparedness
Desired Resources
Better models of spread + vaccination
Stronger employee tech + comms
More PPE to keep employees safe + productive
Stronger internal executive leadership
Stronger customer-facing online platforms
Covid advantages; company stronger
Covid weaknesses; company weaker
Which of the following would have been most helpful in effectively responding to the coronavirus pandemic?
Companies Wanted Both Better Models and Comms to Strengthen Their Pandemic Response
45%
46%
9%
40%
44%
16%
41%
42%
17%
28%
50%
22%
28%
27%
28%
26%
23%
25%
21%
21%
20%
Increased Willingness
Holistic Approach
Leadership gave attention to understanding different risks
Hover to see the difference between stronger/weaker companies.
Changes in approach to risk and decision making during the pandemic
Risk Prep Isn’t a Silo: Stronger Companies Take a Holistic View
78%
Increased my company's appetite to take on more risk
Made my company more risk averse
The pandemic experience has…
COVID-19 Has Increased Companies’ Willingness to Take on More Risk
More company leaders participating in understanding risks
77%
Expanded the risks we consider to include pandemics
76%
Expanded the risks we consider even beyond pandemics
76%
Integrated risk assessment into decision making
76%
Focused on the interconnectedness of different risks
74%
+6
+4
+8
+5
+12
+10
What separates companies in a position of strength from those who feel weakened by the pandemic is this: The understanding that better decision making is data-driven – but not data-only.
Insights driven by data, paired with expert analysis and advice, is critical to navigating a path forward in a world of interconnected risk.
Surveyed C-suite leaders and senior executives state more reliable data is necessary to understand the current – and future – risk landscape, but while weakened companies are focused on access to data, strong companies are focused on analysis of data. Expert analysis and experience are critical to better understand what the data show, and stronger companies are able to reach beyond the bounds of a spreadsheet. Those surveyed stating a stronger position, see patterns in the data, leveraging expertise, which helps them make better decisions.
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Decisions Powered by Data, Analysis and Expertise
Better Decision Making
Data and Stakeholders
Access and Expertise
Models, analytics, or data science tools
Talking with direct reports
First-hand look at data + info
Being patient and not rushing a decision
Working with external consultants
Consensus agreement with executives
Consulting relevant stakeholders
COVID-19 made company stronger
COVID-19 made company weaker
% Very important for ensuring company makes better decisions
Stronger Companies Value Data; Weaker Companies Value Stakeholders
61%
52%
61%
55%
49%
57%
52%
50%
46%
51%
51%
52%
54%
53%
COVID-19 made company stronger
82%
COVID-19 made company weaker
74%
The ability to analyze available data + info
Access to data + info
Specific issue expertise
The ability to predict events + dynamics
COVID-19 made company stronger
COVID-19 made company weaker
% Very confident your company has access to the following it will need to make sound decisions in the coming year
Confidence in Future Decision Making Tied to Expertise, Analysis
61
47
58
55
55
41
50
51
The global COVID-19 pandemic has exposed a stark reality for the global economy: The threats businesses face today are multi-faceted, complex and interconnected, and all require accelerated innovation as each decision can have a profound impact.
More than 18 months since the global outbreak of COVID-19 – and a year out from our initial research – business leaders have emerged with a renewed confidence in the economy and a greater appetite to embrace calculated risks. They have also identified two critical needs: to be better informed – with greater access to data, analytics and modeling – and to be better advised – by experts who can deliver relevant insights and solutions.
A New Approach
to Volatility:
The Importance of
Making Better Decisions
Aon Insights
Adaptation Future Information
Optimism Innovation Analysis
Information Decision Making Business Prioritie
Balance Performance
Confidence Business Priorities
Opportunities Growth Risks
Analysis Information Confidence
Priorities
Decision Making
Growth
Confidence
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Better insurance or financial protection
Better external comms or crisis response
More loans or aid from govt
Stricter govt-enforced lockdowns
Stronger internal and mid-level resilience
21%
20%
20%
14%
13%
12%
In the coming weeks, we’ll be unveiling another important piece of research that features direct insights from our clients, representing risk decision-makers from around the world.
See Economic Outlook
Featured Insights
Explore our findings
