CEO Alert: Navigating Global Risks and Opportunities in 2025

Global Uncertainty Tops CEO Concerns in 2025

As the world navigates a complex landscape of trade tensions, geopolitical instability, and technological advancements, CEOs are bracing themselves for a challenging year ahead. A recent study by The Conference Board surveyed 1,722 C-suite executives and board members, including 508 CEOs, to uncover the top concerns weighing on their minds.

Trade Wars and Geopolitical Risks Take Center Stage

Nearly half of the CEO respondents cited intensified trade wars as a leading risk factor in 2025, with tensions between the U.S., E.U., and China contributing to concerns over an increased risk of conflict in the Asia-Pacific region. The ongoing conflicts in the Middle East and Ukraine may not have a significant impact on current operations, but CEOs are wary of potential escalation.

Supply Chain Resilience Takes Priority

In response to global political instability and the threat of escalating trade tensions, CEOs are prioritizing supply chain resilience. A staggering 78% of CEOs plan to alter their supply chains over the next three-to-five years, driven by motivations such as risk reduction, cost reduction, proximity to customers, and sustainability.

Economic Risks and Opportunities

Higher energy prices emerged as the top economy-related geopolitical risk, particularly in Japan and Europe. Meanwhile, U.S. CEOs are most concerned about the size of the national debt. While fears of an economic recession or downturn persist, they have lessened slightly since last year’s study.

Investing in Technology and Talent

CEOs are betting on technology, including AI, to drive profit growth. Globally, increasing automation is the top priority, while U.S. CEOs focus on enhancing the customer experience. However, integrating AI into operations poses significant challenges, including a lack of expertise, system integration, and output quality.

Labor Shortages and Regulatory Hurdles

Labor shortages, higher labor costs, and demographic changes are key concerns for CEOs, particularly in Japan and Europe. Attracting and retaining talent is a top internal human capital issue, with only 4.2% of respondents planning to reduce headcount. Additionally, CEOs are wary of regulatory hurdles, citing corporate tax rates, protectionism, and regulation in operating countries as significant obstacles to business growth.

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