The Top Risks for Organizations in 2017
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The Top Risks for Organizations in 2017
Corporate board members and executive leaders are concerned about economic conditions, regulatory changes and scrutiny, disruptive technology and cyber-attacks and threats. -
Economic Uncertainty
72% of the board members and executives surveyed are concerned that economic conditions in the markets they serve may restrict growth opportunities. -
Ominous Oversight
66% cited prospects for heightened regulatory changes and scrutiny as a top risk, because they can affect the manner in which products and services are delivered. -
Passing Lane
63% are concerned that the rapid speed of disruptive innovations and/or new tech in their industry may outpace their company's ability to compete and/or manage risk, without making major changes to the business model. -
Destructive Force
60% of the respondents fear that their organization may not be sufficiently prepared to manage cyber-threats that can significantly disrupt core operations and damage their brand. -
Protection Plan
57% cited the need to ensure privacy, identity management, information security and system protection as a top risk, as these measures may require vast resources. -
Market Shift
57% admitted that sustaining customer loyalty and retention may be increasingly difficult due to evolving consumer preferences and demographic shifts in their existing customer base. -
Talent Targets
55% of the respondents are concerned that their company's succession challenges and ability to attract and retain top talent may limit the achievement of operational targets. -
Avoidance Environment
55% fear their organization's culture may not encourage the timely identification of risk issues that have the potential to affect core operations and the accomplishment of strategic objectives. -
Inflexible Position
54% of the respondents said resistance to change may restrict their company from making necessary adjustments to the business model and core operations. -
Topsy-Turvy
53% of the corporate board members and executives cited anticipated volatility in global financial markets and currencies as a significant risk.
If fears about the year ahead are keeping you up at night, you're in good company: Corporate board members and executive leaders have plenty on their minds these days, according to a recent survey from Protiviti and the Enterprise Risk Management (ERM) Initiative at North Carolina State University's Poole College of Management. The accompanying report, "Executive Perspectives on Top Risks for 2017," reveals that concern about economic conditions affecting key markets has emerged as the biggest potential source of risk. Survey respondents also have misgivings about regulatory changes and scrutiny, disruptive technology and, of course, cyber-attacks. To survive, CIOs will have to work with fellow C-suite executives and board members to proactively identify the top risks and threats to strategic goals, and respond effectively and rapidly. "Entities in virtually every industry and country are reminded all too frequently that they operate in … an increasingly risky global landscape," according to the report. "Rapidly escalating concerns about political and economic stability, data breaches and related cyber-attacks, and continued incidents of terrorism vividly illustrate the reality that organizations of all types face risks that can suddenly propel them into global headlines, creating complex enterprise-wide risk events that threaten brand, reputation and, for some, their very survival. Boards of directors and executive management teams cannot afford to manage risks casually on a reactive basis, especially in light of the rapid pace of disruptive innovation and technological developments in a digital world." (Note to readers: We have ranked the risk factors in order of those presenting the greatest potential for "significant impact," according to survey respondents.) A total of 735 global corporate board members and executives took part in the research.