Top executives fear economic risk most, with 82% highlighting threats posed by inflation, interest rates and currency volatility in a survey by global law firm Clyde & Co.

People-related challenges such as attracting new talent shared second spot with increased regulatory and compliance burdens, at 58% each.

Climate change placed ninth in the top 10 high-impact risks, compiled in the law firm’s annual Corporate Risk Radar. 

“Increased interest rates and volatile currencies are having an impact across all global sectors, particularly the ability of businesses to attract capital and new investment as private equity funding moves to more stable markets,” the firm says.

The global survey of 225 decision-makers, in-house legal teams and general counsels was conducted in partnership with a research consultancy.

Clyde & Co says the findings suggest a heightened perception of risk across various fronts as businesses grapple with a convergence of economic volatility, geopolitical turbulence and the accelerating impact of AI.

“Organisations are having to deal with risks that were never on their radar in the past,” partner Eva-Maria Barbosa said.

“An unpredictable economic environment with shorter and more volatile cycles is being fuelled by growing geopolitical tensions. In response, we are seeing a proliferation of sanctions and a greater regulatory burden which organisations must now navigate.”

Click here for the report.