Organizations Brace for 2023 Perma-Crisis in Geopolitical Shifts
The Risk Outlook 2023 report is based on a survey of 1,218 senior risk professionals across 108 countries, providing a detailed view of major risks that international and Malaysian organisations must address in 2023.
Organisations worldwide are predicted to face significant risks and challenges in 2023, decreasing productivity levels due to geopolitical shifts, rising cost-of-living, health risks from climate change, and mental health issues.
According to the International SOS Risk Outlook 2023 report and global risk map, Malaysian organisations and worldwide companies need to prepare for an ever-shifting 'perma-crisis' environment by utilising accurate, trusted, and timely sources of information to support their employees.
The Risk Outlook 2023 report is based on a survey of 1,218 senior risk professionals across 108 countries, providing a detailed view of major risks that international and Malaysian organisations must address in 2023.
International SOS' top five trends that organisations need to be aware of in 2023 include the power of intelligence in decision-making, adjusting to 'perma-crisis,' climate change increasing health risks, travellers wanting more support, and the new era for mental health at work.
The Russia/Ukraine conflict was the defining security issue of 2022, and the conflict will certainly still have an impact in 2023. Geopolitical volatility will spread beyond Russia/Ukraine, and it is beneficial for organisations to consistently revisit the likelihood and possible impact to understand potential implications for their business and people.
Permanent Crisis
Many crisis management teams are learning to deal with a state of 'perma-crisis.' It will be beneficial for organisations in 2023 to provide the correct level of training, investment, and support for these teams. Many surveyed experts predict that these geopolitical trends will negatively impact productivity levels in the next year.
The COVID-19 pandemic was an accelerant for mental ill-health globally, with levels of mental health conditions increasing by more than 25% during the pandemic.
Organisations are recognising the increased need to focus on mental ill health, and 90% of respondents state that their mental health support offerings had either increased or stayed the same in the last year. However, there are barriers to providing the necessary support to employees, with over half of respondents citing limited time and money. A workplace culture that focuses on preventing mental ill-health and promotes self-care is invaluable for employees.
Unrest
The findings highlighted in the report demonstrate how many experts predict that social unrest will also be a key driver of lost productivity in 2023. For instance, 48% predict that cost of living pressures will impact domestic employees, and 33% see civil unrest impacting business travellers. While social unrest may not directly impact Malaysian companies locally, they do have the potential to impact their international offices, supply chains, and employees.
Jing Tan, Regional General Manager and Director of South East Asia, International SOS, emphasises that Malaysian businesses need to ensure they have the right early warning systems in place to understand potential issues and what kind of response is needed. Employees and decision-makers need to be knowledgeable about risks and steps their organisation is taking to mitigate them to keep the workforce safe.
In conclusion, the year ahead is predicted to be disruptive, and organisations need to be prepared for an ever-shifting 'perma-crisis' environment by utilising accurate, trusted, and timely sources of information to support their employees, particularly business travellers. It is vital that organisations invest in the right support and interventions which will have the greatest impact on employee outcomes and mental health moving forward.
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