THE RISKS
ECONOMIC AND POLITICAL VOLATILITY KNOWLEDGE AND CAPABILITY
Denition:
Percentage who gave a rating of 6 or 7 on a scale of 1 to 7
The ongoing impacts of the pandemic combined with the normal dynamics of macroeconomic cycles have the potential to create volatility in the markets in which organizations operate. This risk examines the challenges and uncertainties organizations face in a dynamic and potentially volatile economic and political environment.
Analysis: Overall, there is fairly strong alignment among executive management, board members, and chief audit executives across risk relevance, personal knowledge, and organizationalcapabi.Howevlity er,whileemor thands two-hir of all respondents saw the potential effects resulting from EconomicandPolitcalVolatiltyashavingahighimpact on their organizations, personal knowledge surrounding this risk and perceptions of organizational capability remain relatively low.
RISK STAGE
Quote: “Things were a breeze until 2008-2009. Now 2020-2021 into 2022, we’re expecting a lot of volatility…I don’t have strong feelings about where the economy is going, but we’re planning more now for major impacts like product shortages, delays, disruptions like that.” –C-suite, Finance
Remained in Develop
RISK RELEVANCE Percentage who gave a rating of 6 or 7 on a scale of 1 to 7 – Economical and Political Volatility
63%
67%
Board
C-suite
80% CAE
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