Geopolitical confrontation is the top concern for large global investors, coming just ahead of climate change, a study by the Thinking Ahead Institute has found. The survey asked 26 global investors with around US$6 trillion in collective assets under management their views on a range of systemic threats. Geopolitical confrontation was number one, named by 84% of respondents as a threat, while climate change came second, with 72% concerned about escalation. Polarisation and the erosion of social cohesion were also named as major risks by 42% in the survey, which was conducted in partnership with Australia’s sovereign wealth fund, the Future Fund. Overall, 88% of respondents said they expected systemic risks to grow in incidence and size, while 73% said managing complexity was a top challenge. “There is a rocky road ahead for asset owners,” said Roger Urwin, Co-founder of the Thinking Ahead Institute. “All investors should prepare for a bumpier ride by building more resilience into their organisation – thinking ahead, more agile organisational design, better culture and stronger risk frameworks will all play their part.” The survey also found 38% considered artificial intelligence as integral to their future strategy, while 65% said attracting and retaining talent was a top issue.
