Doing Business in 2023: Three

 Key Challenges to Prepare For

David McEwen, Director- Arrow Partners

The year 2023 promises to bring with it a new set of challenges for businesses.  While every year presents its own unique set of hurdles, there are three major challenges that are likely to be more prominent than others in 2023.  These challenges are cybersecurity, skill shortages, and corporate resilience.  In this article, we will explore each of these challenges in detail and discuss how businesses can overcome them.

Challenge 1: Cybersecurity

Cybersecurity has been a major concern for businesses for many years, and 2023 is unlikely to be any different.  With the ever-increasing reliance on digital technology, the risk of cyber attacks and data breaches is greater than ever before.  According to a report by Cybersecurity Ventures, the cost of cybercrime is expected to reach USD$10.5 trillion annually by 2025.  This staggering figure highlights the importance of businesses taking cybersecurity seriously.

One of the biggest challenges businesses face when it comes to cybersecurity is keeping up with the constantly evolving threats.  Cybercriminals are becoming more sophisticated in their attacks, and businesses must be proactive in their efforts to stay ahead of them.  This means investing in the latest security technologies, such as advanced threat detection and response systems, and ensuring that employees are trained in cybersecurity best practices.

Another challenge businesses face when it comes to cybersecurity is the growing number of devices that are connected to their networks.  The rise of the Internet of Things (IoT) has made it easier than ever for hackers to gain access to sensitive information.  Businesses must ensure that all devices connected to their networks are properly secured and that they have measures in place to detect and respond to any potential breaches.

To overcome the cybersecurity challenge, businesses must prioritise security and invest in the latest technologies and training.  They must also regularly review and update their security policies and procedures to ensure they are up to date with the latest threats.

Challenge 2: Skill Shortages

The second major challenge businesses are likely to face in 2023 is skill shortages.  Many industries are already experiencing a shortage of skilled workers, and this trend is likely to continue into the future.  According to a report by the World Economic Forum, by 2025, the world will have a shortage of 85 million high- and middle-skilled workers.

This shortage of skilled workers can have a significant impact on businesses, particularly those in technology and other high-skill industries.  It can make it difficult for businesses to innovate and keep up with the latest technologies, which can put them at a competitive disadvantage.

One way businesses can overcome the skill shortage challenge is by investing in training and development programs for their employees.  By providing employees with the opportunity to upskill and reskill, businesses can develop a more skilled workforce and ensure they have the skills they need to stay competitive.

Another way businesses can overcome the skill shortage challenge is by partnering with educational institutions and industry groups to develop programs that address specific skills gaps.  By working together, businesses can ensure that the next generation of workers has the skills they need to succeed in the workforce.

Challenge 3: Corporate Resilience

The third major challenge businesses are likely to face in 2023 is corporate resilience.  Corporate resilience refers to a company's ability to adapt and respond to unexpected challenges, such as economic downturns, natural disasters, and global pandemics.

The COVID-19 pandemic has highlighted the importance of corporate resilience, with many businesses struggling to adapt to the sudden changes brought about by the pandemic. Those businesses that were able to adapt quickly and implement new strategies were more likely to survive and thrive during the pandemic.

To overcome this challenge, businesses must take a proactive approach to risk management, diversify their operations and revenue streams, and invest in technology that can help them to adapt quickly to changing circumstances.  By doing so, businesses can improve their resilience and be better prepared to withstand and recover from unexpected events.

David McEwen

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