When it comes the top risks for 2024, economic conditions and inflationary pressure emerge as the top near-term concerns for the year, said Protiviti recently when releasing results of a survey conducted together with the NC State University Poole College of Management's Enterprise Risk Management (ERM) Initiative.
The survey collected responses from more than 1,100 board members and C-suite executives from organisations worldwide in a variety of industries, the firm noted.
Top risks for 2024 according to the survey
There was significant turnover in the top risks over the coming year, with six falling out of this year's top ten list for 2024 versus last year, including the top near-term risk, Protiviti said.Â
Economic conditions and inflationary pressure aside, finding and retaining talent while managing culture and workplace evolution remained a major concern, the firm observed.
Of the 36 macroeconomic, strategic and operational risks assessed in the survey, the top five risks identified for next year are as follows, survey results indicated.
1. Economic conditions, including inflationary pressures
2. Ability to attract, develop and retain top talent, manage shifts in labor expectations, and address succession challenges
4. Third-party risks
5. Heightened regulatory changes and scrutiny
Top risks for 2034
Survey respondents also rated the expected impact of the same 36 risks for a decade out, into 2034, assessing how the risk landscape might shift over the coming decade.Â
The top five risks identified for 2034, according to survey results are as follows.
1. Cyber threats
2. Ability to attract, develop and retain top talent, manage shifts in labor expectations, and address succession challenges
3. Adoption of digital technologies requiring new skills in short supply
4. Rapid speed of disruptive innovations enabled by new and emerging technologies and/or other market forces
5. Heightened regulatory changes and scrutiny
"The economy, inflation and cybersecurity clearly loom large on the executive risk agenda, but the best leaders realize that all these risks are intertwined and need to be addressed as a whole, not in parts," said Matt Moore, global leader, Risk and Compliance, at Protiviti. "C-suites and boards need to be nimble to address concerns on a variety of strategic and operational fronts and keep pace with the speed of change. Leaders are expected to manage multiple external risks effectively without disruptions to operations, productivity or profitability."
How companies can take action
The report from Protiviti and NC State's ERM Initiative also outlines the following next steps that executives should take to address address key areas of concern 1. Navigating an uncertain economic environment
2. The cyber issues executives should be thinking about
3. Forging ahead with artificial intelligence capabilities
4. Embracing new talent strategies
5. Understanding and managing the geopolitical risk landscape
