Global business leaders are becoming increasingly paralysed by a relentless cycle of crises, with their excessive caution now posing a significant threat to growth, according to BDO’s Global Risk Landscape Report 2025.
The annual report, based on a survey of 500 C-suite executives at firms with revenues over $100 million, reveals that 84% of decision-makers believe the global risk environment is now defined by constant crisis—up from 76% last year. In response, nearly seven in ten (69%) say their organisations are now ‘risk averse’ or actively ‘risk minimising’, compared with 61% in 2024.
Alarmingly, the number of executives describing their risk management strategy as ‘very proactive’ has plummeted to just 7%, a sharp decline from 19% last year and 29% in 2023.
The top concerns dominating boardroom agendas include regulatory risk, supply chain fragility, talent acquisition and retention, geopolitical instability, environmental challenges, and cybercrime. While regulatory oversight is increasing, only 39% of respondents believe it significantly reduces company risk. The majority—57%—see it as only ‘somewhat helpful’, while a growing number of CEOs are expressing frustration over compliance costs they feel deliver limited strategic value.
Alisa Voznaya, partner and head of risk consulting at BDO, warned that too many leaders are responding to uncertainty with defensive stagnation. “The risk landscape for businesses has been in flux for more than a decade and shows no sign of stabilising,” she said. “Faced with this relentless volatility, some business leaders are being too hesitant to take decisions and are paralysed by fear. But this safety-first approach means businesses are missing out on opportunities and limiting their growth prospects.”
Voznaya argues that overreliance on compliance frameworks is leading to a box-ticking culture that distracts from the active management of real-world risks. “Many would do well to adopt a more proactive approach, engaging in regular scenario planning and anticipating the things that could go wrong so they can start to identify opportunities,” she added. “Businesses shouldn’t lose sight of the fact that there can be competitive gains to be made from responding positively to challenging circumstances.”
The research highlights a tension between the pressure to maintain resilience and the need to invest in future growth. With regulation increasing across almost every sector—from financial services and life sciences to manufacturing and private equity—executives report being bogged down in compliance rather than focusing on innovation or agility.
BDO’s findings suggest that risk management must evolve beyond static frameworks to become more dynamic and opportunity-led. As Voznaya concludes: “It’s time to move from paralysis to purpose. Businesses that can shift their risk mindset from reactive to resilient will be best placed to thrive in an era defined not by certainty, but by adaptability.”
Paul Jones
Harvard alumni and former New York Times journalist. Editor of Business Matters for over 15 years, the UKs largest business magazine. I am also head of Capital Business Media’s automotive division working for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.