Zachary Ochuodho @zachuodho
Chief executives around the world are bullish about the global economy this year though challenges abound, a new study by KPMG indicates.
The 2018 Global CEO Outlook report released yesterday says terrorism, cyber attack, disruptive technology, climate change and operational risk could inform the overall growth outlook. The CEOs, the report,s finds are also driving growth against a backdrop of significant demographic shifts and geopolitical volatility.
However, for the chief executives to succeed, they need to take the proactive approach to the emerging issues to forestall what may affect growth in their companies.
Bill Thomas, KPMG International chairman says that CEOs need to recognise that geopolitical uncertainty, disruption and cyber threats are their new normal.
“CEOs will need to play a leading role in cyber security, particularly in terms of vulnerabilities in their extended ecosystem of suppliers and partners. While they cannot be political players, they need to put geopolitics on the agenda,” he said.
The report says that CEOs and their boards need to understand the implications of geopolitical risk for their finance, business and operating models so as to maximise growth. It says CEOs play critical roles in driving business model innovation and growth by challenging the status quo in their organisations to stimulate new thinking and shift the innovation equation.
“As the companies look to drive growth in a digital age, CEOs need to work with boards and other stakeholders to map different scenarios for the future of the business and set new key performance indicators,” Thomas said.
CEOs, he said will have to marry their experience, data-driven insight to ensure that the data and analytics efforts are focused on the most valuable opportunities. The Global CEO Outlook surveyed 1,300 chief executives.