CEO & Board Survey 2025
Risky Business

1. Seasoned Leaders, Shaken Confidence

Even executives who've seen it all are uncertain about what's ahead.

The people running major corporations are quietly admitting something they've never admitted before. They don't know if their business is ready for the risks ahead.

When we asked CEOs and board directors about their organizations’ readiness to tackle today's biggest risks, only 11% reported feeling extremely confident.

When it comes to specific risks, confidence gets even scarcer. Only 9% feel fully confident in their ability to manage economic volatility, and a mere 6% are extremely confident their organization will be able to overcome the risks around talent and skills gaps.

When Experience Doesn’t Beget Confidence

You'd think that decades in the corner office would make leaders more confident about handling crises.

But our data reveals that confidence isn't steadily increasing with tenure these days. Instead, it peaks somewhere in the middle of leaders' careers, typically between 10 and 20 years of experience. Then, surprisingly, it starts to fall.

Today's business environment is feeling fundamentally different to experienced leaders—different enough that expertise doesn't always translate into confidence.

The Board-CEO Disconnect

Many CEOs are also board directors. Still, our survey discovered differences in how CEOs and boards perceive risk.

For example, 73% of tech CEOs are highly confident in their ability to face risk head-on, but only 36% of their board members feel the same way. This type of misalignment can lead to conflicting priorities, unclear resource decisions, and slow, fragmented responses.

CEOs and boards also sometimes disagree about which strategies will best mitigate risk.

Take a look at tariffs, for example. The risk affects supply chains and pricing strategies across almost every industry.

But CEOs in our survey said their top move would be to diversify suppliers. Boards, however, prioritized scenario planning as the top approach.

When leadership doesn't agree on the basics, it's no wonder organizations struggle to execute robust risk strategies.

We Need to Talk

With all these unprecedented threats swirling around, you'd think boards and CEOs would be getting together more often. But in our survey, 43% of boards say they’re still meeting with their CEOs on the same formal quarterly schedule they maintained during calmer periods.

This means three whole months can pass between formal strategy discussions, even as AI breakthroughs, geopolitical events, or regulatory changes reshape entire industries within weeks.

A mere 6% of boards have shifted to weekly meetings to keep up with how fast decisions need to happen now.

The Business Impact

What can happen when CEOs and boards lack confidence in their organization’s ability to respond?

• Critical decisions stall during the moments that matter most.
• Mixed signals from the top leave teams unclear on what really matters.
• Budgets go to the wrong problems while real risks go unaddressed.
• Top talent walks when employees lose confidence in leadership’s direction.

What Leaders Can Do

Build confidence through preparation, not wishful thinking

Create monthly risk intelligence briefings, so boards and management work from the same playbook. Run scenario simulations regularly. Don't wait for crises to test your assumptions. And consider leadership accelerators to boost confidence and capabilities.

Get boards and CEOs on the same page

Boost communication during high-risk periods to ensure everyone is up-to-date between formal meetings. Make sure everyone's seeing the same data about threats and opportunities, then get crystal clear on who owns what. Drive board effectiveness with a board evaluation or consulting.

Stay grounded in customer reality

When everything else feels uncertain, double down on customer conversations. They'll tell you what actually matters and where your competitors are gaining or losing ground.

“A lack of confidence doesn’t mean a lack of competence. It often means the world has changed—and the leader is paying attention.”
Dominic Schofield, managing partner of Board & CEO Services, Korn Ferry

2. The Industry Risk Divide

Some industries are in crisis mode while others are relatively calm.

Today’s risks aren’t hitting everyone equally. Some sectors are feeling the heat far more than others.

Perceptions of risk vary not just by industry but also by the type of threat.

While tech leaders are upbeat about managing AI disruption, they’re far less certain about withstanding economic volatility. Meanwhile, in life sciences, executives feel well prepared for climate-related risks, yet geopolitical threats leave them uneasy.

Leaders in financial services express strong confidence in tackling talent and skills challenges, but only 56% believe they can handle economic shocks—an unexpected vulnerability for an industry built to manage financial turbulence.

Healthcare paints the starkest picture, where just 22% of executives feel highly prepared for the triple threat of geopolitical unrest, AI, and climate change. And with persistent talent shortages, only 3% are extremely confident they can address workforce risks.

Why Risk Hits Harder in Some Sectors Than Others

Consumer markets live and die by supply chains and price sensitivity. When tariffs disrupt suppliers or drive up costs, retail executives feel the pressure immediately.

Their business moves fast. Products need to hit shelves promptly, consumer demand shifts quickly, and profit margins are razor-thin.

Industrial manufacturers face similar supply chain chaos, but with higher stakes. Unlike retailers, who can pivot suppliers relatively quickly, manufacturers are locked into capital-heavy production processes. Overhauling a factory can take months and cost millions.

Life sciences operates in a completely different universe. Drug development takes years, regulatory approvals are slow, and demand for essential healthcare is far less sensitive to economic swings than consumer goods.

A new tariff announcement might eventually affect their supply chains, but it's not going to reshape their strategy next quarter.

"Risk isn’t one-size-fits-all. Industry context shapes everything, from exposure to response.”
Lucy McGee, senior client partner, Board Practice, Korn Ferry

The Business Impact

When industries face rising risks without the confidence or capacity to respond, the consequences aren’t just operational. They’re existential.

• Some sectors end up preparing for the wrong fights while missing risks that could blindside them.
  
• Cross-industry partnerships get strained when companies have vastly different risk appetites and timelines.
  
• Talent starts migrating toward "safer" industries now that the trend of skills-based hiring makes it easier to jump sectors.
  
• Investment capital flows unevenly toward industries that appear more stable, potentially creating dangerous bubbles in "safe" sectors.

What Leaders Can Do

Don't assume your industry's calm means you're safe

Just because your sector feels stable doesn't mean you're immune to second-order effects. Build monitoring systems that track risks beyond your immediate industry bubble.

Learn from adjacent industries facing similar challenges

If consumer markets are wrestling with supply chain disruption, what lessons apply to your business even if you're not retail? Cross-pollinate risk intelligence across sectors.

Assess the skills you have

To respond effectively to emerging risks, you need to know what skills your workforce has and where the gaps are.

Bring in outside perspectives

Add a board member with expertise from other sectors that have faced similar risks. Fresh eyes can spot blind spots that industry insiders miss.

3. AI Without the ROI

Leaders are panic-spending on technology with no promise of a payoff.  

Leaders are placing massive bets on uncertain returns. A mere 8% have full confidence that they'll get strong returns on their AI investments within three years.

The spending spree may be driven more by fear than strategy. Nobody wants to be the company that gets left behind by a competitor's AI breakthrough.

But throwing tools at the pressure to “do something with AI” isn’t enough. Real return on investment requires organizational change. Companies need to rewire how work gets done, how decisions are made, and how teams are structured to fully harness AI’s potential.

"AI isn't just about tech. It's about transformation."
Jane Edison Stevenson, global vice chair, Board & CEO Services, Korn Ferry

AI’s Biggest Barrier

Companies are pouring money into AI—but pouring money in isn’t the same as putting AI to work.

What’s standing in the way of organizations successfully adopting AI? The biggest barrier isn't technical or strategic. It's navigating the constantly shifting landscape of AI regulations.

Companies are trying to move fast in a space where the rules are still being written and where mistakes can lead to hefty fines or compliance failures.

A Measured Shift, Not a Mass Exodus

Despite the noise about AI-driven job loss, most CEOs aren’t expecting sweeping layoffs. In fact, 82% say no more than one-fifth of their workforce will be replaced by AI in the next few years.

That’s still a significant shift, but it’s a far cry from the doomsday scenarios dominating headlines.

The real story isn’t about mass displacement. It’s about quiet restructuring—rethinking how work gets done, how roles evolve, and where automation fits into the organizational design.

But here’s the risk. If leaders don’t communicate clearly about what’s changing and what’s not, employees will fill in the blanks themselves. And that gap between perception and reality can stall transformation before it even starts.

The Business Impact

The impact of misaligned AI investments? Wasted budgets, regulatory risk, and stalled innovation.

• Billions in sunk costs with little to show for it as companies chase AI solutions without clear use cases
  
• Regulatory slip-ups are becoming expensive as organizations outpace legal frameworks
  
• Internal skepticism is growing—early AI investments that fail to deliver are stalling innovation
  
• Employees are anxious, sensing a disconnect between public messaging and internal planning, even if large-scale job losses aren’t expected

What Leaders Can Do

Tie AI investments to business outcomes

Start with real problems, not shiny tools. Define success upfront and hold tech teams accountable for measurable results.

Plan for regulatory complexity from day one

Build compliance and ethics review into your AI development process. The rules will only get tougher, so get ahead of it now.

Be honest about workforce implications

The gap between public messaging and private planning is unsustainable. Communicate clearly and invest in retraining where needed.

Prioritize explainability over sophistication

Choose AI you can understand and explain to stakeholders. Black box systems may impress, but they're risky when things go wrong.

“AI is freeing people up to do more impactful work. But there will be job disruption at certain job types, and overall job architecture will need to change.”
Alan Guarino, vice chairman of CEO and Board Services, Korn Ferry, as seen on Fox Business

4. Goodbye Emotional Intelligence?

The push for digital skills is sidelining what really makes leaders great.

Organizations are doubling down on technical skills—but in doing so, they risk overlooking the human capabilities that drive transformation, trust, and long-term performance.

Nearly 70% of CEOs and board directors rank AI and tech skills as the top leadership priority for the next three years. Emotional intelligence sits at 38% and the ability to drive employee engagement is lower still at 20%.

The logic seems sound at first glance. AI is reshaping how work gets done, so leaders need to get fluent fast.

But organizations are making a critical mistake. Instead of developing irreplaceable human strengths, such as creativity, trust, and relationships, some leaders are training people for tasks machines will soon take over.

The result is a workforce caught in the middle—being trained to compete with AI on its terms, rather than being equipped to lead transformation alongside it.

The AI + EQ Equation

It's not that leaders are consciously deprioritizing emotional intelligence. They're just focused on what feels like their most urgent gap.

Many executives recognize they have significant technical gaps compared to what they need for the future.

But there's a dangerous assumption at play—that emotional intelligence is already "figured out" among senior leaders, while technical skills need urgent attention. The reality is more nuanced.

“The future of leadership isn’t just digital. It’s deeply human.”
Tierney Remick, vice chair, co-leader of global CEO and Board Services Practice, Korn Ferry

Veteran leaders may have developed stronger EQ through years of experience, but younger employees entering the workforce may need both technical and human skills development.

The organizations that figure out human-AI leadership—developing both technical fluency and emotional intelligence—will be best equipped for what's actually coming.

The Business Impact

The impact of sidelining emotional intelligence? Disengaged teams, stalled innovation, and eroded trust.

• Employee engagement tanks when leaders are trained to optimize systems, not support people.
• Innovation stalls without empathy and collaboration. Technical skills alone don’t spark new ideas.
• Culture becomes transactional rather than relational when leaders focus on efficiency but forget to inspire.
• Top talent walks when managers can't support them. People don't quit companies, they quit bosses.

What Leaders Can Do

Build both tech fluency and human connection

Don't treat this as either/or. The best leaders will be those who can navigate AI tools while still inspiring their teams through uncertainty.

Make empathy measurable

Don't let human skills become the "nice to have" trait that gets forgotten during performance reviews. Integrate relationship-building and team engagement into how you evaluate leaders.

Protect space for actual conversations

In the rush to automate everything, make sure leaders still have time for the coaching and one-on-one check-ins that build real trust.

Remember different people need different development

Your veteran leaders might need AI training while your younger employees need coaching on emotional intelligence. Don't assume anyone has these skills mastered.

5. The Battle for Buy-In

Leaders ready to face risk often discover unexpected obstacles.

Even when leaders know exactly what needs to be done about enterprise risk management, they're hitting brick walls inside their own organizations.

In our survey, CEOs and boards said their number one barrier to managing risk is a cultural resistance to change (31%), particularly at large companies. Lack of investment was a close second (29%) and was more commonly cited by smaller organizations.

The cultural resistance problem runs deeper than simple reluctance to change. It's about people being afraid of what change means to them personally.

When organizations have spent years operating one way, asking employees to suddenly embrace new risk management practices feels threatening. People worry about job security, changing responsibilities, and whether they'll be able to succeed under new systems.

Large companies face this challenge most acutely. They have more layers of management, more entrenched processes, and more people who've built their careers around "how we've always done things."

"Culture change starts with the CEO."
Tierney Remick, vice chairman and co-leader, Global Board and CEO Practice, Korn Ferry

The Business Impact

Cultural resistance doesn’t just slow change. It derails risk strategies before they start, drains momentum, and leaves organizations exposed when it matters most.

• Risk management strategies gather dust on shelves while internal politics and budget battles drag on.
• Change fatigue sets in before changes are even implemented as employees become skeptical of yet another transformation initiative.
• Competitive advantages slip away while more agile competitors implement solutions faster.
• Crisis response becomes reactive instead of proactive when organizations can't build resilience ahead of problems.

What Leaders Can Do

Treat culture as a strategic asset, not a soft issue

Stop talking about culture change as a nice-to-have and start treating it as mission-critical infrastructure. Assign ownership, set metrics, and track progress like any other business priority.

Connect risk strategy to purpose, not just profit

Help people understand why changes matter beyond just protecting the bottom line. When employees see how risk resilience connects to job security and company mission, resistance tends to drop.

Let middle managers drive change, not just deliver it

Your frontline and senior leaders might be aligned, but middle management often gets forgotten. Invest in training and supporting the people who actually implement day-to-day changes.

Start small and build momentum

Don't try to transform everything at once. Pick one high-impact, low-resistance change that can create early wins and build confidence for bigger transformations.

Risk as the New Normal

The message from 250 CEOs and board directors is clear. We're in a time of exceptional business risk, and traditional leadership approaches aren't cutting it anymore.

But our research also shows that the organizations getting it right aren't trying to eliminate risk. They're building the muscle to handle whatever comes next.

What does that look like?

• Leaders who can admit uncertainty while still taking action.
• Teams that master both AI tools and human connection.
• Cultures that embrace change instead of fighting it.
• CEOs and boards who are on the same page.

The companies that figure this out won't just survive the current storm. They'll come out stronger on the other side.