male and female CEO in front of computer looking worried

What will keep the world's chief executives up at night this year?

The risk of a recession is their biggest external concern, according to the latest business leader survey by The Conference Board, "The CEO View of Risks and Opportunities in 2020."

"Today's heightened recession concerns are amplified by what CEOs see as continued uncertainty around global trade, increasing competition, global political instability, and tightening labor markets — which, in themselves, can be significant restraints on business growth," the authors write.

Uncertainty around global trade is most acutely felt by responding CEOs in both China and Latin America, according to the survey. Though still a top-five external concern, CEOs in both Japan (ranked fifth) and the U.S. (tied for fourth) give it less emphasis than their global peers, while Europeans rank it as their third top concern.

Meanwhile, economic sanctions are "biting" companies in China, "likely linked to the US government's more aggressive trade approach," the authors write.

"In November 2018, the U.S. Justice Department launched its 'China Initiative,' which formally encourages U.S. law enforcement agencies to aggressively advance their China cases," they write. "Many more indictments are expected to follow on the heels of Huawei, which is accused of selling communications equipment to Iran in violation of US sanctions on that country."

Another top concern? A tight labor market. For mature economies like the U.S., Germany and Japan, demand is exceeding supply at historic levels; for emerging markets, the challenge is a shortage of qualified candidates, not a lack of people.

"The global challenge in acquiring and retaining talent requires companies to be more strategic — knowing not only what qualities and skills to recruit for, but also how to recruit more efficiently and effectively," the authors write. "One emerging tool: artificial intelligence, which can be used to significantly enhance the employee experience, supporting recruitment, engagement and retention of key talent."

The second most-critical internal hot-button issue for CEOs: the need to create new business models because of disruptive technologies.

"The impact of business model transformation on an organization goes well beyond the external relationship with customers and how a business goes to market," the authors write. "Organizations must quickly pivot in response to new risks and opportunities, requiring changes in organizational culture, structure, leadership and a continuous evolution of talent and upskilling."

This also means building a culture of innovation, another top internal challenge: "It's all about vision and looking forward, even if the 'next big thing' means large-scale internal disruption."

Cybersecurity issues continue to concern CEOs across the globe — the risks and potential costs of cyberattack, from securing corporate secrets and intellectual property to safeguarding customer, partner and employee information, according to the survey.

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4 things that worry CEOs the most in 2020

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