This past week, some of the world’s economic policymakers gathered at an annual economic symposium in Jackson Hole, Wyoming. A recurring theme at the event was the belief that the extraordinary economic volatility of the last few years is likely to persist for many years to come, due to factors like geopolitics, pandemic and climate change. At the event, this period of time was referred to as the “Great Volatility,” contrasting with the “Great Moderation” of decreased macroeconomic volatility experienced from the mid-1980s to 2007.

 Uncertainty has become the new constant in a world that is increasingly volatile and where new business models are rising and falling at an ever-increasing speed. At Aon, we work with organizations to help shape business decisions for the better across several areas that are experiencing volatility:

• The economy: The current level of inflationary pressures globally has not been seen in generations, due in large part to the effects of the COVID-19 pandemic, which created a myriad of interconnecting issues resulting in demand of goods and services outstripping supply. Read more about the resources Aon offers to help clients mitigate inflation risk here.
• Public health: The COVID-19 pandemic has had a profound impact on all types  of businesses and reminded us of all the challenges that manifest from  extreme events. In echoes of the early COVID-19 response, the Director General of the World Health Organization recently declared the monkeypox outbreak a public health emergency of international concern, with the first death in the U.S occurring this week. Read more to learn how Aon helped clients implement effective responses to the early impacts of COVID-19, much of which can be applied to the recent outbreak in monkeypox cases.
• Geopolitics: Aon and Lloyd’s recently published “Ukraine: A Conflict That Changed The World,” which examines the deeply interrelated and highly volatile impacts the conflict in Ukraine is having on business and how they can work to mitigate these risks. Dive into key findings from the report.
• Climate: Weather events are becoming more severe and occurring more frequently around the globe. By providing natural catastrophe models and response resources, Aon helps accelerate climate resilience for businesses to help ensure they are prepared for the risks related to severe weather events. Read more here.