Half of German Companies Feel Ill-Prepared for Crises Despite Learning from Past Challenges

A recent study highlights significant gaps in crisis preparedness among German companies, with 50.5% of businesses considering themselves poorly or very poorly equipped to handle future crises such as supply chain disruptions, workforce shortages, cyberattacks, power outages, and extreme weather events. Only 18.8% feel well or very well prepared, revealing a widespread vulnerability despite previous experiences. While 54.8% of companies acknowledge learning from past crises, few invest in proactive crisis management, including pilot projects, regular simulations, or scenario planning.

Niklas Happerschoß of ESCP Business School underscores that scenarios like losing a quarter of the workforce are not just theoretical; many firms faced similar challenges during the COVID-19 pandemic. Indeed, 53.4% of companies admit inadequate preparation for personnel shortages.

However, there is some optimism: many German businesses believe their products, services, and innovations positively influence the resilience of their value chains, benefiting partners and customers alike. This suggests that although internal crisis readiness may lag, companies contribute to broader systemic resilience through external collaboration and innovation.

This insight into German corporate risk management reveals a pressing need for enhanced investments in crisis preparedness measures to ensure business continuity in an increasingly volatile environment.