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ANINew DelhiAs many as 56 per cent of global business leaders expect external disruptions, including geopolitical conflicts, energy shocks, cyber threats, trade uncertainties and c...
According to a KPMG International report, 56% of global business leaders anticipate that major disruptions like geopolitical conflicts, energy crises, cyber risks, trade volatility, and climate events will significantly impact their operations, expenses, and overall performance within the next three to five years. These disruptions have the potential to ripple through interconnected supply chains, affecting various phases of business operations.
Moreover, 70% of surveyed business leaders reported an escalation in their organizations' risk exposure over the past two years.
Technology and artificial intelligence (AI) disruption topped the list of concerns for the upcoming two years, cited by 64% of respondents, followed by geopolitical conflicts at 58% and macroeconomic uncertainty at 48%. The report emphasized that risks rarely occur in isolation, as geopolitical tensions, technological disruptions, cyberattacks, and resource scarcity often exacerbate each other, leading to a domino effect across global supply chains.
Supply chain stages most exposed to these risks, according to the report, include technology and digital dependencies (cited by 46% of respondents), delivered costs and price volatility (39%), and shipping & logistics (33%). Disruptions to critical shipping routes, particularly those influenced by tensions in the Middle East and the Strait of Hormuz, can reverberate beyond transportation, impacting freight, insurance, financing, and industrial production.
The report also warned that suppliers operating across multiple countries may still be exposed to the same maritime routes and infrastructure.
To mitigate these risks, 49% of respondents prioritized AI and predictive analytics to bolster supply-chain resilience, while 44% focused on scenario planning and stress testing, and 39% concentrated on alternative sourcing strategies. Anish De, KPMG International's Global Head of Energy, Natural Resources, and Chemicals, emphasized that resilience has evolved from a supply chain function to a board-level imperative driven by energy-linked disruption and a complex web of interconnected risks.
The report advises businesses to shift away from traditional risk management approaches towards continuous risk monitoring, scenario modeling, and enhanced flexibility to safeguard critical operations against potential future disruptions.
Written by urgent.news from Qatar Tribune Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
