Protiviti’s annual Executive Perspectives on Top Risks study surveyed more than 1,100 board members and C-suite executives from organizations in various industries and identified the top risks facing corporations today and those expected a decade ahead.
The top risks identified for 2024 include:
Economic conditions, including inflationary pressures
Ability to attract, develop and retain top talent; manage shifts in labor expectations; and address succession challenges
Cyber threats
Third-party risks
Heightened regulatory changes and scrutiny
The top risks identified for the coming decade include:
Cyber threats
Ability to attract, develop and retain top talent; manage shifts in labor expectations; and address succession challenges
Adoption of digital technologies requiring new skills in short supply
Rapid speed of disruptive innovations enabled by new and emerging technologies and/or other market forces
Heightened regulatory changes and scrutiny
Cybersecurity jumped into the top risks in both the near- and long-term after not making the top five last year, reflecting growing recognition of the impacts of a complex cyber risk landscape.
Geopolitical tensions are playing a larger role in the cybersecurity landscape, and this is likely only going to increase in the years to come. Competing national interests, nation-state territorial aspirations and global terrorism are powerful forces that can affect cyber risk assessments in particular regions and countries.
The ability to attract, develop and retain top talent; manage shifts in labor expectations; and address succession challenges will be a challenge for business leaders long-term, as reflected in its ranking as the second-highest risk for 2034.
Initiatives to incorporate new technologies drive the need to reskill and upskill employees, presenting a challenge both now and in the future. Despite fears about AI replacing jobs, it is clear that technology is a critical part of addressing talent-related risks as it provides opportunities to streamline work and free people up for more strategic and meaningful activities.
Despite a long-standing talent struggle, companies have not yet cracked the code on long-term talent solutions, so the related risks will persist over the next decade.
Interestingly, survey results indicated a relatively stable risk landscape. When considering top risks in the next 10 years, four of five risks identified by survey respondents were the same as in last year’s report. However, the risk levels are elevated over the next decade, confirming that organizations’ risk profiles are sensitive to events and risks that can emerge rapidly and sometimes unexpectedly, underscoring the likelihood of more disruptive times ahead.