Connected threats cause decision paralysis: Aon
Four interlinked “megatrends” are driving complexity, volatility and uncertainty for businesses and society, Aon warns.
“The megatrends of trade, technology, weather and workforce are creating unprecedented challenges for business leaders, who risk decision paralysis when urgent action is needed,” CEO and president Greg Case said.
The broker’s Client Trends 2025 report says artificial intelligence has a rising role in improving global trade efficiency, while organisations are increasingly adopting the technology in processes such as talent acquisition and engagement.
Weather volatility is affecting trade, as shown by severe flooding in Spain that hit the motor industry last year, while impacts from heatwaves, wildfires and other extreme events have repercussions for employees.
Mr Case says the integration of AI in human resources is reshaping job functions and skill requirements across industries.
“As companies work to capitalise upon this transformation, they must ensure their workforce is equipped with the necessary technical skills while maintaining critical human oversight to drive innovation and ethical decision-making,” he said.
The report details connection points between the megatrends, and opportunities and strategies to respond, such as climate-resilient supply chain infrastructure and modelling risk.
Aon says weather events do not need to be extreme or local to disrupt a business, with examples including flood impacts in low-lying areas where sea levels have risen, such as parts of Florida.
“Flooded roads prevent workers from traveling to work, and flooded coastlines mean less tourism. Similarly, wildfires burning in one part of the continent can disrupt air travel hundreds, if not thousands of miles away.”