In the latest KPMG CEO Outlook survey of more than 1,300 global managers, a majority have cited geopolitics and broader political uncertainty among the greatest risk to business growth in 2023.

Both phenomena, which were not even named in the top five findings of the 2022 survey, have this year climbed to the top of growing concerns for senior executives as ongoing and new political turmoil impact the global economy. This, as the ongoing conflict between Russia and Ukraine becomes further compounded by the recent Israel-Hamas war, with the latter rendering global relations unstable as death tolls rise daily. In the Caribbean and more closer to home, geopolitical instability in Haiti has also crippled business activities, forcing many companies to have either halted or shuttered operations in that country.

KPMG in a statement accompanying the findings has said that while confidence in the global economic outlook will remain broadly unchanged over the next three years, there has been a significant shift across CEOs’ views on what constitutes a risk to their business. This significant shift in views, which now see’s geopolitics and political uncertainty being named among the greatest risk, comes as a result of CEOs having to become overly proactive in navigating their companies presence and operations in conflict zones or having to increasingly manage disrupted supply chains and price fluctuations.

The study, which found more than three-quarters or 77 per cent of CEOs citing rising interest rates and tightened monetary policies, which could prolong the threat of a global recession, as well cost of living pressures as those most likely to negatively impact their organisation’s prosperity, also said that the persistent flux in global politics, trade dynamics and international relations has compelled them to reassess their strategic priorities.

“The Caribbean is not exempt from geopolitical issues affecting companies globally and our business leaders in the region should be proactive in building resilience into their strategies,” stated Tarun Handa, senior partner at KPMG Caricom.

“While the threat of a global recession looms and the Caribbean, like many regions globally, faces cost of living pressures, it is reassuring that the overall economic outlook remains cautiously optimistic,” he however noted.

The CEOs in charting a course through the complexities, KPMG’s global chairman and CEO Bill Thomas said, will also require for them to unlock a new level of resilience, as they reassess their strategic priorities to focus on new challenges including the rise of artificial intelligence, talent management and high stakeholder expectations in addressing environmental, social and governance (ESG) issues.

“Business leaders are facing challenges and obstacles to growth on multiple fronts — from geopolitical uncertainty and politicisation to increased stakeholder expectations in the ESG space and the adoption of generative AI.

“What I [however] find reassuring is that, despite the many macroeconomic and geopolitical challenges right now, mid-term global confidence remains relatively robust. There’s also a consensus that we can, in time, return to a path of international, sustainable long-term growth,” Thomas said.

Continuing, he said that as these CEOs look to take advantage of an emerging opportunity to drive the return of a more equitable and successful planet, “the key to success will be an unrelenting focus on long-term strategic planning and commitment to avoid the danger of short-term reactive leadership which is always a threat during a period of deep uncertainty.”