Immediate and pressing financial events have pushed risks that involve issues such as climate change or pandemics off most executivesÃ¢â‚¬â„¢ radar screens, according to a global survey conducted by Oliver Wyman with the Financial Times.
Less than 10 percent of executives surveyed consider potential threats related to environmental issues, societal risks, or technological concerns as major risks.
According to the study:
This result is especially troubling given the high-profile events related to these issues that have emerged in the last 12 months, including the eruption of volcanic ash in Iceland and the sudden emergence of the H1N1 flu.Ã¢â‚¬
So what do executives consider their biggest risk over the next 18 to 36 months?
The survey found that 71 percent of executives listed global recession among their top five concerns, while 56 percent cited regulatory risks as one of their top five concerns.
Nearly one-quarter of respondents viewed recession as the biggest risk to their company.
Liquidity/credit crunch, financial market volatility and commodity price volatility rounded out the top five perceived global emerging risks among survey respondents.
Some 650 executives and senior managers of global organizations with annual revenues greater than $1 billion responded to the survey.