●64% of crisis managers around the world believe that corporate risk escalated in 2016

●73% report crises that could have significantly harmed the reputation of their firm in 2016

●Cyber-insecurity was the most frequent source of risk, accounting for 53% of major crises that threatened the firm’s reputation

●67% of crisis managers believe the world will become an even risker place to do business in the next three years.

2016: The year in crisis, a report by The Economist Intelligence Unit (EIU) and sponsored by FTI Consulting, is based on a global survey of 537 experienced managers of corporate crises. More than 50% of respondents were members of the board of directors or C-suite.

Executives across industries say that corporate risk has grown – for example, 71% of respondents in IT, 66% of those in financial services, and 64% of energy executives believe risk escalated in 2016. When asked to name the crisis that had the greatest impact on their firms’ reputation, 27% reported cyber-attacks that targeted sensitive data, 13% identified cyber-theft, and 13% cited hacking that released sensitive information. This totaled 53% of all attacks, making cyber-attacks larger than all other crisis types combined.

Social media are seen as having a strong influence on how crises unfold. Seventy per cent of the executives surveyed believe that social media amplify corporate crises, and 73% believe they accelerate the pace of crisis management. 

Looking ahead, executives identified the factors they expect to have the greatest influence on crises over the next three years. Cyber-risk was cited most often (by 36% of respondents), while political risks such as abrupt policy changes (32%) and income inequality (31%) ranked second and third.