EY-Parthenon: How CEOs are Adapting to Global Volatility

Despite long-term geopolitical instability, business leaders aren’t retreating. 

In fact, the latest EY-Parthenon Q3 CEO Outlook Pulse Survey reveals quite the opposite. 

The study, which brings together insight from global leaders, finds that CEOs now feel more confident in managing uncertainty, reshaping supply chains and adjusting operating models to match the current landscape.

Rather than relying on stability to return, leaders are focusing on what they can control – embracing disruption and restructuring as an opportunity for growth. 

Across mergers, technology investments and localisation, CEOs are staying resolute in terms of making clear decisions to strengthen operational agility.

Confidence in managing long-term uncertainty

The survey, conducted by FT Longitude for EY-Parthenon, collects anonymous insights from 1,200 CEOs of large global companies across 21 countries. 

These include the UK, the US, Australia, China, Belgium, Mexico and Singapore. 

Five industries are represented: consumer and health, financial services, industrials and energy, infrastructure and technology, media and telecoms. The companies' global annual revenues range from less than $500m to over $5bn.

EY-Parthenon is the global strategy consulting arm of EY, working with CEOs to shape strategic initiatives. 

EY teams work across assurance, consulting, tax, strategy and transactions, operating in more than 150 countries and territories.

More than half of the survey’s respondents believe global uncertainty will extend beyond 12 months. 

A further 24% expect it to persist for over three years. Inflation and tariffs are top concerns, with 79% citing inflation as an operational issue and 78% pointing to tariffs as a challenge.

Cybersecurity is also affecting confidence. Some 69% of CEOs say rising cybersecurity threats are undermining their confidence in innovation. A further 70% report that inconsistent and fragmented technology regulation is slowing digital transformation.

Embracing disruption as a catalyst

Despite these pressures, business leaders show a shift in mindset. 

Rather than wait out volatility, CEOs are moving to adapt. Within the next 12 months, 52% plan to increase portfolio transformation efforts. Another 39% intend to maintain transformation at the current pace.

Across the board, leaders agree that the global economy is changing. 

In response, strategies such as localisation – keeping production and growth close to the markets being served – and regionalisation – developing supply chains that serve specific blocs – are becoming more common. 

Almost three-quarters see localisation as a long-term shift. Nearly two-thirds are also backing regionalisation.

“Today’s CEOs are not merely reacting to the challenges posed by volatility; they are embracing it as a catalyst for transformation,” says Andrea Guerzoni, EY Global Vice Chair – EY-Parthenon.

“The findings of our survey highlight a clear shift toward localisation and regionalisation, as leaders seek to enhance resilience and agility in their operations. This mindset is helping them to seize opportunities and drive sustainable growth in an unpredictable environment.”

Volatility is changing global market dynamics, and regional models allow firms to respond faster to local customer demands and expectations. 

For many CEOs, this is not a temporary measure but a strategic repositioning.

Transactions as a tool for resilience

In this environment, strategic transactions are gaining momentum. Mergers and acquisitions (M&A), joint ventures and strategic alliances are helping companies manage risk while pursuing innovation.

According to the survey, 48% of CEOs plan to engage in more traditional M&A over the next 12 months. An even higher proportion, 73%, expect to enter joint ventures or alliances.

This preference for alliances over full acquisitions signals a targeted approach. Leaders are choosing collaborative models that allow shared risk and greater agility in response to market shifts.

Andrea explains: “CEOs are recalibrating their approach to transactions, focusing on strategic partnerships that allow for agility and shared risk. The current environment demands a shift in mindset, where collaboration becomes essential for navigating uncertainty and driving growth.

"As global CEOs adapt to the complexities of today’s business landscape, their focus on localisation, strategic transactions to drive transformation, and technology investments positions them to thrive amid ongoing challenges.”

Across global markets, these plans vary. M&A activity is currently highest among CEOs in the US, followed by leaders in Canada, the UK, India and Germany.

Technological advancement remains a key factor, with 41% of respondents identifying innovation as the main reason behind their M&A strategies. 

This reflects the role technology plays not only in transformation but in sustaining competitive advantage in a fragmented and fast-moving environment.

Resilience through strategic reinvention

The outlook from CEOs shows a clear move towards embedding long-term resilience into business models. While views on the duration of volatility vary, confidence in addressing these issues is increasing.

Organisations are no longer just reacting to risk—they are incorporating it into strategy, embedding risk management into transformation efforts. This suggests a structural shift in how global companies operate. Leaders are accepting that geopolitical and economic uncertainty is part of the new normal.

Instead of waiting for stabilisation, CEOs are choosing to adapt – realigning operations, reshaping portfolios and building out partnerships. With a clearer view of what transformation requires, they are moving with purpose toward sustainable growth models designed to perform through disruption.