New Aon Research Shows Importance of Better Decision Making in C-Suite in Wake of COVID-19 Pandemic

Rhea-AI Summary

Aon's recent survey indicates a surge in executive optimism, with nearly 90% of respondents expecting improved business conditions in the coming year. Conducted with 800 C-suite leaders across North America and Europe, 79% expect growth, and 40% foresee double-digit revenue increases. The pandemic has heightened awareness of interconnected risks, leading 80% of leaders to embrace calculated risk-taking. However, a divide exists in perceived preparedness between C-suite and lower executives, with only 12% of C-suite leaders feeling unprepared, compared to 22% of other senior executives.

Positive

• 90% of executives anticipate stronger business conditions.
• 79% of leaders expect growth, with 40% projecting double-digit revenue growth.
• 80% of leaders report increased appetite for risk post-pandemic.
• 61% of executives value data and analytics for decision-making.

Negative

• 12% of C-suite leaders feel unprepared for disruptions, contrasting with 22% of other executives.

- New research shows nearly 90 percent of executives are expecting business conditions a year from now to be stronger

- Majority of respondents agree that the pandemic exposed new vulnerabilities, driving willingness to invest in preparation for other long-tail risks

CHICAGO, Sept. 29, 2021 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced the results of its recent survey, "A New Approach to Volatility: The Importance of Making Better Decisions." More than 18 months since the global outbreak of the COVID-19 pandemic, Aon surveyed 800 C-suite leaders and senior executives in the U.S., the EU, the UK and Canada to reveal how organizations are preparing for and responding to interconnected risks. The survey follows Aon's research conducted in 2020, and reveals that a year later, business leaders have a renewed confidence in the economy and a greater appetite to embrace calculated risks.

"We are at an inflection point where businesses are not only focused on overcoming the current challenges we are facing, but shifting to think about other long-tail risks and how to prepare for them," said Greg Case, Chief Executive Officer of Aon. "As leaders look at the future of their businesses in an increasingly volatile world, the pandemic has reshaped their views of risk and sharpened the importance of making better decisions. The past year has given leaders the insight they need to understand the dynamics of long-tail risks and the need to be better prepared, sparking optimism for what lies ahead."

Additional findings from the survey include:

• A majority predict significant growth: About four in five leaders (79 percent) estimate growth in the year ahead and 40 percent expect double-digit revenue growth. Among the 38 percent of leaders who indicated they were "very prepared" to deal with the pandemic, 55 percent estimate double-digit revenue growth.
• Preparedness paid off, but the C-suite could exhibit a confidence bias: The research revealed a disconnect between C-suite executives setting the strategy and the people on the ground executing that strategy. Only 12 percent of C-suite leadership felt their company was unprepared for the pandemic, compared to 22 percent of senior executives.
• Successful leaders are risk-aware, not risk-averse: Most leaders (80 percent) say the pandemic experience has increased their companies' appetite to take on more risk and make investments in order to build resiliency for the future. Executives are keen to take on new risks relevant to financing and capital investment, with 55 percent of respondents expressing interest in raising new capital, financing or debt and 50 percent of respondents open to investing in new technologies.
• Failure to prepare and act weakens companies significantly: Companies who were weakened by the pandemic - 32 percent of those surveyed - struggled to integrate risk assessment into decision-making and to focus on the interconnectedness of varying risks. Companies that were unprepared and subsequently weakened by the pandemic fell behind their successful counterparts in two key areas: access to financial protection against losses and the ability to keep employees safe and productive throughout the pandemic. Conversely, strong companies took a holistic, integrated view to pandemic response and reported risk integration as key to their approach to disarming evolving risks.
• Stronger companies value data, analysis and expertise: Surveyed C-suite leaders and senior executives place more value on models, analytics or data science tools - 61 percent - to ensure their company makes better decisions. Among stronger companies, 61 percent also state they are very confident they have the ability to analyze available data and information to make sound decisions going forward.

"Our research shows that executives are confident in the future and have prioritized the need to be better prepared for risk in the wake of the pandemic," said Lori Goltermann, Chief Executive Officer of Enterprise Clients at Aon. "When speaking with CEOs and other leaders through our Enterprise Client Group, these findings validate their experience and reinforce our role in delivering solutions that give our clients the clarity and confidence to make better decisions that protect and grow their businesses."

The research was conducted in August and September 2021 through 800 online interviews with C-suite and senior business leaders, spanning diverse industries including technology, finance, production and service companies. The survey builds upon the 2020 research, "Are You Prepared for the Next Big Threat?" and adds a perspective from Canadian business leaders. To view the 2021 results, please click here.

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. 

Follow Aon on Twitter and LinkedIn. Stay up-to-date by visiting the Aon Newsroom and sign up for News Alerts here.

Media Contact
Nadine Youssef
mediainquiries@aon.com
Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
International: +1 312 381 3024

 

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SOURCE Aon plc

FAQ

What are Aon's survey findings regarding executive optimism for the future?

Aon's survey reveals that nearly 90% of executives expect stronger business conditions in the next year.

What percentage of executives expect double-digit revenue growth according to Aon's survey?

40% of executives surveyed expect double-digit revenue growth in the upcoming year.

How has the pandemic influenced executive risk-taking according to Aon?

80% of executives report an increased appetite for taking on risks following the pandemic.

What was the sample size and demographic of Aon's recent survey?

The survey included 800 C-suite leaders from the U.S., EU, UK, and Canada.

What discrepancy exists between C-suite and senior executives regarding preparedness?

Only 12% of C-suite leaders felt unprepared, compared to 22% of senior executives.