Leaders of organizations in virtually every industry, size of organization and geographic location are reminded all too frequently that they operate in what appears to many to be an increasingly risky global landscape. Escalating concerns about the rapidly changing business environment and the potential for unexpected surprises vividly illustrate the reality that organizations of all types face risks that can disrupt their business model over time and damage reputation almost overnight. Boards of directors and executive management teams cannot afford to manage risks casually on a reactive basis, especially considering the rapid pace of disruptive innovation and technological developments in an ever-advancing digital world.
Protiviti and North Carolina State University’s ERM Initiative are pleased to provide this report focusing on the top risks currently on the minds of global boards of directors and executives. This report contains results from our seventh annual risk survey of directors and executives to obtain their views on the extent to which a broad collection of risks is likely to affect their organizations over the next year.
The results suggest that organizations worldwide share several critical concerns, including:
- Shifting cultural norms and expectations of accountability
- Disruptive business models and "born-digital" competitors amid resistance to change
- Innovations triggered by emerging technologies
- Shifting customer preferences and demographics
- Record lows in unemployment and tightening labor markets
- Cyber breaches on a massive scale
- Big-data analytics