Businesses face an “historically broad and deep set of risks in 2023” which will pose interconnected and even existential threats, sector-wide, according to risk consultancy, Control Risks.

Launching its annual RiskMap forecast today, Control Risks identifies the top risks for business as fractious geopolitics, armed conflict, disrupted energy systems, economic strife and disarray in digital networks during the coming year.

The US-China relationship is the greatest geopolitical risk for businesses in 2023, according to the report. Armed conflict between the US and China remains very unlikely in 2023, but competition and confrontation are moving from the trade and technology realms into the military domain. Companies are being warned to be alert to the prospect of an accident or miscalculation involving US and Chinese military vessels operating in Asia. Businesses must monitor efforts to decouple critical supply chains.

In 2023 war, or the prospect of war should be high on all risk registers. There will be continuing risk of escalation and overspill from the Ukraine-Russia conflict. The complex commercial, operational, reputational, supply chain and sanctions risks from this war means many are considering what these would look like in the event of a conflict in East Asia.

Said Control Risks CEO, Nick Allan: “2023 will see more geopolitical and economic volatility accompanied by operational challenges in energy and digital networks. The increasingly apparent effects of a changing climate will add additional stresses and strains. Resilience, insight and courage will be the watchwords for business in the year ahead.”

See the next issue of CIR Magazine for an in-depth look at this report.

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