EY Survey Finds Most Companies Unprepared for Today’s Turbulent Risk Environment

Key Takeaways

• EY Survey Findings: 73% of organizations report they do not have preparations in place for today’s turbulent risk environment.
• NAVI World Defined: Risks are increasingly nonlinear, accelerated, volatile, and interconnected, creating compounding crises.
• Rising Awareness: Mentions of NAVI-related risks in corporate disclosures have increased 50% since 2020.
• Risk Strategists’ Edge: Leading firms report 50–74% improvements in compliance, efficiency, accountability, and response times.
• Strategy-Risk Alignment: EY urges organizations to link foresight-driven plans with agile sprints to adapt to volatility.

Deep Dive

Corporate attention to risk has never been higher, but preparedness has not kept pace. EY’s 2025 Global Risk Transformation Study reveals that while earnings calls are increasingly filled with references to today’s unpredictable climate, 73% of organizations admit they lack preparations to manage it.

EY frames today’s environment as the NAVI world, one defined by risks that are Nonlinear, Accelerated, Volatile, and Interconnected. This shift has been building since the pandemic, when COVID-19 highlighted how quickly global shocks could spill over into supply chains, energy markets, and regulatory frameworks. Mentions of NAVI-related terms in corporate disclosures have risen by 50% since 2020, underscoring the scale of boardroom concern.

But the NAVI world is more than just faster-moving risks. It is about compounding crises. Political instability influences sanctions compliance. AI advances create new vulnerabilities as quickly as they create opportunities. Climate-related disruptions magnify downstream effects across financial, operational, and reputational risk. Traditional enterprise risk management systems (designed for isolated and predictable challenges) are ill-suited to handle this complexity.

Michael Berberich, Vice President of Group Risk Management & ICS at Fresenius Group, described the shift plainly, “These aren’t simple one-off incidents; they are instead deeply interconnected with other risks, creating implications for everything from supply chains and energy prices to sanctions compliance. And, compared to a few years ago, we are now in a world where multiple crises strike at the same time, stretching risk functions thin, and challenging us to do more with less.”

The Emergence of Risk Strategists

Not all companies are falling behind. EY’s research highlights a cohort of “Risk Strategists” that outperform their peers by embedding risk directly into strategy rather than treating it as a compliance exercise. These firms demonstrate:

• Reduced Surprises: half as likely to be blindsided by unexpected risks.
• Improved Response: a third better at identifying incidents quickly and mounting a coordinated response.
• Cultural Strength: higher levels of accountability and alignment with risk culture.
• Operational Gains: better efficiency, lower costs, and stronger regulatory compliance.

This is not luck or market positioning, it is a mindset shift. These organizations treat risk as a driver of resilience and growth, integrating it into decision-making processes across the C-suite and board.

Strategy and Risk Must Converge

The study argues that thriving in the NAVI world requires aligning strategy and risk management like never before. Traditional frameworks remain too siloed and static, failing to keep up with nonlinear dynamics. Instead, EY recommends a dual approach, meaning long-term foresight paired with adaptive short-term sprints.

Errol Gardner, EY Global Vice Chair – Consulting, emphasized this balance, “Effective transformation requires a dual approach. Organizations should embrace the foresight to develop comprehensive multi-year plans, but also the agility to implement shorter, adaptive sprints.”

The implications are significant. Boards and committees must rethink oversight models, moving beyond process-driven compliance toward integrated risk intelligence that supports strategic decisions. Risk is no longer an isolated function, it is a growth enabler when embedded into business planning.

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