From a small northwestern observatory…

The good folks at AON just shared with me their very detailed Global Risk Management survey for year-end 2017.  It’s a terrific document, very thoroughly researched, and I commend them for the effort they put into this.  (Full disclosure – neither I nor Greenfield, nor any of its affiliates, have any interest in AON.).  This is the sort of study that should be on the desk of every CEO who has globally-affected interests, and certainly real estate and private equity fall into that category.

The document is chock-full of good stuff, and I’ll revisit this in future posts.  Two interesting comments, however, hit me right up front.  First, and I’ll simply quote from the survey, “…developed nations, which were traditionally associated with political stability, are becoming new sources of volatility and uncertainty that worry businesses…”. Of course, they’re taking about the U.S. and its misguided trade war, BREXIT, the elections in Northern Europe, and the impeachment of the South Korean president.

Second, what are the top concerns for global businesses and wealthy families?  The list may come as a surprise to those who don’t follow these important sectors, but these certainly make sense in today’s climate:

1. Damage to reputation/brand
2. Economic slowdown / slow recovery
3. Increasing competition
4. Regulatory / legislative changes
5. Cyber crime / hacking / viruses / malicious codes
6. Failure to innovate / meet customer needs
7. Failure to attract or retain top talent
8. Business interruption
9. Political risk / uncertainties
10. Third party liability

I can tell you Greenfield is deadly serious about these issues.  You should be, too.