Ninth Edition

Global Risk Management Survey

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Canada Results

Aon’s Global Risk Management Survey (GRMS) is designed to assess business leaders’ attitudes about risk management generally and about specific risks. The 2023 results for Canada show respondents share many risk concerns with their global counterparts.

Top 10 Risks Facing Canadian Organizations Now

Cyber Attack or Data Breach
Failure to Attract or Retain Top Talent
Business Interruption
Economic Slowdown or Slow Recovery
Cash Flow or Liquidity Risk
Damage to Brand or Reputation
Workforce Shortage
Failure to Innovate or Meet Customer Needs
Supply Chain or Distribution Failure
Capital Availability

Cyber attack or data breach was the number one Canadian risk in 2023. Although many organizations view digital transformation as essential to their strategies, it exacerbates cyber risk by enlarging the digital attack surface and increasing potential security vulnerabilities. Cyber risk also exemplifies the interrelated nature of risk: it can compromise a company’s data and intellectual property and cause business interruption (ranked third in 2023) and damage to brand or reputation (ranked sixth in 2023).

Failure to attract or retain top talent ranked as the second highest risk in 2023 and could be contributing to two other top 10 risks, business interruption (#3) and failure to innovate/meet customer needs (#8). Persistent understaffing and shortages of skilled labour is adversely affecting many sectors of the economy.

The high rank of business interruption could also be a result of record-breaking wildfires in Canada. The fires charred 18.4 million hectares in 2023, posing grave risk to life, causing extensive environmental damage and health hazards, and having considerable negative effects on the economy. Industries affected most profoundly include mining and quarrying and rail transportation.

Economic slowdown or slow recovery ranked fourth in 2023. Because its economy is highly dependent on exports, Canada disproportionately feels the effects of slowdowns in the economies of its trading partners. Additionally, high inflation — and the interest rate hikes aimed at curbing it — exacerbate cost of living risk for residents of Canada.

Canadian respondents also included supply chain or distribution failure risk in their top 10 (#9) in 2023. Especially for the manufacturing industry, high interest rates and global conflicts affecting ports and shipments have accelerated this risk.

Explore the Global Results

Companies are grappling with traditional risks in new guises across both risk and human capital. How can business leaders best prioritise and respond to them?

View Global Report

Top Five Risks Facing Canadian Organizations in the Future

Failure to Attract or Retain Top Talent
Cyber Attack or Data Breach
Economic Slowdown or Slow Recovery
Cash Flow or Liquidity Risk
Regulatory or Legislative Changes

For the most part, Canadian survey respondents anticipate their largest risks in 2023 will continue. Four of five top risks in 2023 appear on Canadian respondents’ list of top five future risks. Only business interruption falls out of the top five, replaced by regulatory/legislative changes, likely due to the complexity associated with understanding and complying with the various regulatory requirements. Because federal and provincial governments each have their own set of sometimes conflicting regulations, the risk of noncompliance increases. This risk can be further complicated by industry, product, or service offerings. For nationwide organizations working across jurisdictions, ensuring compliance can be daunting. Although the shifting regulatory environment creates new challenges, it can also be a competitive advantage for those that can adapt quickly.

Cash flow/liquidity risk inches up from fifth to fourth in the future, likely due to ongoing concerns about rising interest rates, high inflation, and a potential recession. In response to these concerns, companies manage capital more closely and delay costly capital expenditures until they have a firmer grasp of what the future will bring.

Continued low unemployment has led to ongoing staffing shortages and intense competition across industries for highly skilled workers. Respondents expect this risk to intensify in the future. Under these conditions, an organization’s employee value proposition and overall reputation are vital to attracting and retaining talent.

What the Results Mean for Organizations in Canada?

Rising geopolitical and macroeconomic volatility are rapidly shifting the risk landscape. Many Canadian companies are unprepared to manage current and emerging risks. In recognition of this fact, they are increasing their focus on the risk management function and risk management activities. Robust risk management planning will be needed to withstand all manner of emerging risks. To avoid business interruption and bolster resilience, Canadian organizations can develop more-effective business continuity plans that interlock with environmental, social, and governance (ESG) planning.

Organizations can shore up cyber resilience with a strategy that includes data-driven assessment, mitigation, risk transfer, and recovery. Effectively addressing cyber risk requires cross-functional leadership involvement. This may include jointly making decisions about strategies and investments in information security and cyber insurance based on a common understanding of risk.

To attract in-demand talent and differentiate from their competitors, Canadian organizations can define data-backed total rewards strategies and comprehensive employee value propositions (EVPs). EVPs should reflect employees’ interest in talent development, culture, compensation, and benefits. Flexible and customizable rewards and EVPs can better meet the needs of an increasingly diverse workforce.