2017 risk outlook: 6 trends to monitor
2017 is shaping up to be a challenging year from an economic and risk perspective, as companies must monitor policy changes from the new Trump administration and understand evolving risks. The new administration will likely introduce several changes that could spur economic growth, but those may take time and may not be permanent. However, the need to address more pervasive risk challenges is more certain, as you must implement strategies to adequately address your threats and opportunities.
The U.S. economy had a fairly strong close in the second half of 2016, fueled primarily by another solid year of growth and employment gains. The probability of a recession due to coming policy changes has declined between 12 and 15 percent since the election, and middle market business sentiment has improved. The tight labor market has resulted in rising wages across the economy, however, and middle market companies are finding difficulty in hiring qualified employees, with recruitment and retention becoming increasingly challenging.