Good morning. Ask Edmund Reese, CFO of the $75 billion professional services and risk management firm Aon, what’s keeping CEOs and finance chiefs up at night. His answer begins with a list, not a single risk.
“There’s a lot happening right now at once,” he told me. Geopolitical flare-ups in the Middle East are disrupting supply chains. The AI infrastructure boom is driving unprecedented spending on data centers. Cyber threats have climbed to the top of the corporate agenda. For today’s executives, the challenge isn’t any one risk—it’s how quickly they intersect and compound.
“We do a survey each year where we poll the top CEOs, and it’s been oscillating between geopolitical risk being the number one,” Reese said. But cyber overtook it this past year, becoming the top risk on CEOs’ minds in Aon’s latest polling, he said.
Another major concern is how AI is reshaping talent needs. “Talent is always at the top of the list for me,” Reese said. In an industry where competitors aggressively court top performers, Aon is betting that investing in employees—and equipping them with AI-powered tools—will be a competitive advantage.
“We have been on our front foot,” Reese said. AI-driven automation of invoicing, claims, and policy management contributed to the 70 basis points of margin improvement last quarter, he said. AI-enabled “risk analyzers” used during client pitches have also lifted RFP win rates by 40%, helping drive the 10 percentage points of Q2 growth that came from new clients and expanded wallet share.
Reese pointed to hiring as another sign of confidence. Aon expanded its ranks of client-facing revenue generators—brokers, producers, and consultants—by 6% last year and is targeting 4% to 8% growth in that group this year. It’s a bet that investing in client relationships today will translate into stronger growth tomorrow, even as the macroeconomic backdrop remains uncertain.
That same philosophy shapes Aon’s approach to clients. Companies don’t just want to know what risks they face, Reese said—they want to understand how those risks could affect their P&L and balance sheet, and which exposures they should retain versus transfer. As a reinsurance broker, Aon can model those scenarios with extraordinary detail, down to how a seven-story steel-and-wood building in California might perform in a 7.2-magnitude earthquake, he said. That analysis helps clients decide, asset by asset, how much risk to keep and how much to transfer to insurers or other capital providers.
For Reese, uncertainty isn’t a reason to pull back—it’s a reason to innovate. As investors questioned whether AI could eventually displace insurance brokers, Aon doubled down on its “Aon United” strategy, integrating its data, analytics, and expertise into a unified client offering.
The strategy appears to be paying off. Aon reported 5% organic revenue growth and 9% adjusted EPS growth in the second quarter, extending the momentum of its three-year strategic plan. For Reese, those results underscore a broader point: in an increasingly interconnected world, competitive advantage belongs to the firms that can understand and quantify complexity faster than everyone else.
Sheryl Estrada
Sheryl.Estrada@fortune.com
Leaderboard
Christopher Halpin has been named CFO of NBCUniversal, effective Sept. 8. Halpin joins NBCUniversal from People Incorporated (formerly known as IAC), where he served as EVP, COO and CFO. Before that, Halpin spent nearly a decade in senior leadership roles at the National Football League, most recently serving as EVP, chief strategy and growth officer. Prior to joining the NFL, Halpin was a partner and managing director at Providence Equity Partners. Upon completion of the spin-off from Comcast Corporation, NBCUniversal will be an independent publicly traded global media and entertainment company.
Jonathan Collins has been named EVP and CFO of Owens Corning (NYSE: OC), a branded building products provider, effective Aug. 10. Collins succeeds Todd Fister, who assumes the role of president and COO, following a transition period. Collins joins Owens Corning from Clarivate, where he has served as CFO since 2021. Before that, he was CFO at Dana Incorporated. He also spent six years at ProQuest where he served as CFO and VP of global financial operations.
Big Deal
A "FlexJobs Workplace Connection Report" finds that employee connection at work hinges more on leadership communication than on location. Based on a survey of over 1,700 U.S. workers, the report found that 39% only "sometimes" feel socially connected to colleagues, and 43% said their work arrangement—remote, hybrid, or in-person—has no real impact on that connection.
Instead, manager behavior is the bigger driver: half of respondents reported miscommunication with their manager, most often citing inconsistent expectations (39%) and disrespectful communication (35%), with in-person workers reporting miscommunication far more than remote workers.
Going deeper
"Electric air taxis are finally ready for takeoff" is a Fortune feature article by Alexei Oreskovic.
A new breed of aircraft—half-helicopter, half-drone—begin real world tests across the U.S. this summer thanks to a federal program. First up is cargo, with passengers close behind. Read more here.
Overheard
"There are universal factors that make a great bookstore, and it doesn’t matter whether it’s a huge chain store or a small independent."
—Barnes & Noble CEO James Daunt told Fortune in a new episode of the “Behind the Business” series.
