According to a new survey from Protiviti and NC State University, uncertainty in today's marketplace is presenting both new and ongoing risks for executives and board members. Alongside talent, labor and culture-related risks, the survey also reveals that senior decision-makers remain concerned about broader macro risks such as the softening economy and the state of global supply chains.
The 11th annual survey, titled ‘Executive Perspectives on Top Risks for 2023 and 2032’, surveyed 1,304 board members and C-suite executives from organizations around the globe in a variety of industries, asking them during September and October 2022 to rate 38 macroeconomic, strategic and operational risks for 2023 and a decade ahead (2032).
The top risks for 2023
Continuing a trend reported in last year's survey, three of the top four risks highlighted by survey respondents for 2023 are related to talent.
Of the 38 risks included in the survey, the top ten risks identified by business leaders for the coming year are:
- Organization's succession challenges and ability to attract and retain top talent in a tightening talent market may limit ability to achieve operational targets
- Economic conditions in markets we currently serve may significantly restrict growth opportunities
- Anticipated increases in labor costs may affect ability to meet profitability targets
- Resistance to change may restrict the organization from making necessary adjustments to the business model and core operations
- Uncertainty surrounding core supply chain ecosystem may continue for the forseeable future
- Changes in the overall work environment may lead to challenges in sustaining culture and the conduct of the business
- Adoption of digital technologies may require new skills in short supply, requiring significant efforts to reskill/upskill employees
- Organization's culture may not sufficiently encourage the timely identification and escalation of risk issues
- Approaches to managing demands on or expectations of a significant portion of workforce to work in a hybrid or remote environment may negatively impact talent retention
- Organizations may not be sufficiently resilient and/or agile to manage an unexpected crisis
The top risks through to 2032
Survey respondents also rated the expected impact of the 38 risks in 2032, assessing how the risk landscape might shift over the coming decade. The top ten risks identified through to 2032 are:
- Organization's succession challenges and ability to attract and retain top talent in a tightening market may limit ability to achieve operational targets
- Adoption of digital technologies may require new skills in short supply, requiring significant efforts to reskill/upskill employees
- Rapid speed of disruptive innovations enabled by new and emerging technologies and/or other market forces may outpace ability to compete
- Resistance to change may restrict the organization from making necessary adjustments to the business model and core operations
- Ensuring privacy and compliance with growing identity protection expectations may require significant resources
- Existing operations and legacy IT infrastructure may not be able to meet performance expectations as well as "born digital" competitors
- Inability to utilize data analytics and "big data" may limit the achievement of market intelligence and increase productivity and efficiency
- Economic conditions in markets we currently serve may significantly restrict growth opportunities
- Regulatory changes and regulatory scrutiny may heighten, noticeably affecting how products or services will be produced or delivered
- Anticipated increases in labor costs may affect ability to meet profitability target.
