More than 20 months since the outbreak of the Covid-19 pandemic, business leaders are regaining confidence in the economy and in their company’s ability to grow. The gradual reopening of the economy and a stronger than expected recovery are sparking optimism for what lies ahead.
This marks an important juncture for companies in Ireland. Instead of simply overcoming the immediate challenges posed by Covid-19, Irish leaders are shifting to think about post-pandemic risks and how best to prepare for them.
That's why leading professional services firm, Aon, recently launched its inaugural Business Risk Index. The survey of 160 business leaders across Ireland sought to identify and understand their concerns regarding the challenges associated with a return to office and the development of a new working model for their organisation.
The findings show that, despite the positive experience of remote working and continued high levels of productivity during the pandemic, Irish CEOs are facing a unique set of challenges over the coming months as they evolve their working model.
Fostering productivity and innovation
Despite only two in 10 employers feeling the pandemic has hindered their ability to innovate, 60 per cent are uncertain as to whether the challenges of managing a hybrid workforce will impact future company innovation.
“These findings show that as Irish businesses move forward with building out their hybrid working models, employers will need to provide greater flexibility and agility for employees, especially in the initial stages as employees and employers adapt to this new way of working,” said Peter Brady, CEO for Commercial Risk & Health Solutions, Aon in Ireland.
Central to those decisions will be the prioritisation of digital transformation. Investing in digital technologies will help foster virtual collaboration – the vital ingredient to business innovation – as well as creating a hybrid workforce that can easily adapt to an ever-changing business landscape.
Reassuringly, the survey shows that many businesses are already taking steps to address the emerging risks, with 52 per cent of businesses saying that they plan to provide their employees with greater flexibility to mitigate the risk of low productivity in the months ahead. In addition, 40 per cent of businesses say they will use technology to enhance collaboration.
Strengthening cybersecurity
Although vital to business success, the increasingly central role played by technology means that cybersecurity is now a principal concern for many Irish employers.
While almost half of all Irish businesses cite ‘phishing’ as the biggest current cyber risk to their organisation, one in four are concerned about possible ransomware attacks on their business.
Companies are, however, taking steps to enhance their cyber resilience and preparedness with 40 per cent having provided cyber-security training to employees over the past 18 months while 40 per cent have enhanced their data recovery and back-up systems.
“At Aon, we believe that building resilience within an organisation is crucial to heading off a cyber threat – but this is a more complex task than ever and requires a vigilant, cohesive and agile approach. However, by elevating risk management today and taking decisions to address these risks, Irish business leaders can successfully navigate new forms of volatility in the months and years ahead,” says Brady.
Shaping better decisions
The publication of the Business Risk Index comes amidst growing confidence amongst business leaders internationally about the state of the economy. Around four in five leaders globally estimate growth in the year ahead, according to Aon's recent survey "A New Approach to Volatility: The Importance of Making Better Decisions".
80 per cent of leaders globally also believe the pandemic experience has increased their companies’ appetite to take on more risk and make investments in order to build resilience for the future.
“The results of our Business Risk Index here in Ireland and our latest survey of global companies show that successful leaders are risk aware, not risk averse. With attracting and retaining talent a key challenge for companies and organisations in all sectors, leaders have little choice but to make the future of work a success. This requires a renewed focus on business risks as the economy reopens in full and employees return to the workplace,” Brady pointed out.
Aon has been working with industry leaders for many months to shape better decisions as they evolve their working model and the transition to a post-pandemic environment. Earlier this year, the firm developed the Work, Travel Convene report together with a coalition of leading Irish employers and Ibec which outlined the challenges and opportunities associated with the return to office.
“Now, with the publication of our Business Risk Index, we’re confident that Ireland’s business community has the data it needs to navigate an increasingly volatile world, embrace and overcome future risks, and ensure that hybrid working becomes a business opportunity rather than a business barrier,” Brady concluded.