A growing sense of crisis fatigue is gripping global boardrooms, with business leaders becoming increasingly risk-averse and hesitant to pursue growth, according to BDO’s Global Risk Landscape Report 2025. The annual survey, which polled 500 C-suite executives from companies with revenues over $100 million, paints a stark picture of corporate caution in the face of unrelenting global volatility.
According to the report, a striking 84% of executives believe that the current risk environment is now defined by a state of “permanent crisis”—an increase from 76% last year. In response, nearly 70% of organisations have adopted a risk-averse or risk-minimising posture, up from 61% in 2024.
One of the most notable trends is the collapse in proactive risk management. Only 7% of executives now describe their company’s risk strategy as “very proactive,” compared to 19% last year and 29% in 2023—suggesting a significant retreat from strategic engagement with uncertainty.
Top concerns cited by business leaders include regulatory pressure, supply chain vulnerabilities, talent challenges, geopolitical instability, environmental risks, and the growing threat of cyberattacks. Despite a rise in regulatory oversight, just 39% of respondents felt regulation meaningfully reduces risk, while 57% said it was only “somewhat helpful.” Many voiced concerns over the rising costs of compliance, which they argue deliver minimal value to strategic planning.
Alisa Voznaya, partner and head of risk consulting at BDO, criticised what she sees as a growing culture of risk avoidance. “The risk landscape has been in flux for over a decade and is unlikely to stabilise,” she said. “But many leaders are reacting to this volatility with fear, and that fear is stifling decision-making and innovation.”
Voznaya warned that excessive reliance on rigid compliance systems is leading to a “box-ticking” approach to risk management, which may distract from addressing emerging and real-time threats. She urged companies to embrace dynamic scenario planning and to adopt a more resilient, opportunity-driven mindset.
“Rather than being paralysed by uncertainty, businesses should learn to navigate it,” she said. “Those that adapt their risk strategies to be more forward-looking and agile will be best positioned to seize competitive advantages.”
The report underscores a growing tension between maintaining operational resilience and investing in future growth. With regulation increasing across nearly all sectors—from finance to manufacturing—executives face a delicate balancing act. As Voznaya concluded, “It’s time to move from paralysis to purpose.”
