In the face of socio-economic and climate-related challenges, Canadian business leaders remain highly optimistic about the country's economic outlook and in turn their own company's prospects. Their optimism is rooted in part, in the fact that recessionary concerns had accelerated their efforts to improve their operational efficiency, productivity, and cashflow management, leaving them in a stronger position to address any headwinds and drive growth.
Top risks
However, the surveys reveal that the 'will it or won't it happen recession', inflationary pressures, geopolitical tensions, heightened regulation, and climate change are weighing on everyone.
Their worries are evident in their short-term outlook. When compared to their global peers, the CEOs of Corporate Canada (with well over $1 billion in annual revenue) have consistently been among the world's most confident about their company's three-year growth prospects. Last year, an incredibly high number - 91 per cent - of Canadian CEOs felt confident about their company's outlook in line with the sentiment held by their peers in countries, such as in Spain (98 per cent), the U.S. (95 per cent), and Germany (91 per cent). This year, with so many different pressures and issues coming at them, it's not surprising that fewer CEOs – right across the globe – are less confident in their company's growth prospects than they were a year ago. Both Canada and Germany saw an 11-point drop. Similarly, Spain is down 12 points and the U.S. declined 16 points.
The biggest risk to their growth outlook – the one keeping Canadian CEOs awake at night – is the impact of emerging or disruptive technologies on their business. Are they moving fast enough? Are their technology and business strategies aligned?
While regulatory risks dropped from the top spot in 2022, it remains in the top 4 as CEOs grapple with the complex and everchanging regulatory landscape in any number of areas from tax, trade and supply chain to net-zero carbon emissions and environmental, social, and governance (ESG) requirements.
It is not surprising that the CEOs rated cyber security and climate change lower on their near-term risk scale when put in the context that their organizations have invested millions to protect against cyber attacks and have been keenly focused on their net-zero carbon emission plans for several years now.
In contrast, SMBs are playing catch up. Their No. 1 concern: Cyber security. That's followed closely by emerging technologies, energy security and affordability, and climate change risk.
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