The big question for many organizations at the start of 2022 was how quickly world economies would recover from the COVID-19 pandemic. However, Russia’s invasion of Ukraine in February of that year swiftly turned attention to a host of new macroeconomic challenges, including historically high inflation rates, additional supply chain disruptions, and concerns about energy security. In 2023, these market upheavals continue to create headwinds for rated and unrated, public and private entities alike.
Risks are everywhere. However, identifying them before they catch you off guard provides an opportunity to capitalize on what could be an adverse situation to uncover potential gains. Understanding trends that are rewriting the rules of engagement is an important first step to zero in on changes that could significantly impact your business. As we look ahead, we see market volatility, sustainability and climate risk and automation and digitalization shaking up the competitive landscape. This paper looks at these three important trends from a credit perspective and provides insights on how to turn market risks into business opportunities.