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2022 AND 2031 EXECUTIVE PERSPECTIVES ON TOP RISKS

Key issues being discussed around the globe in the boardroom and C-suite

Massive disruptions in the global supply chain. Challenges in attracting and retaining talent to address needs all across the enterprise. The Delta and Omicron variants. Cyber attacks and ransomware. Geopolitical tensions in specific regions and shifts on issues related to climate change. Long-overdue shifts in expectations related to diversity, equity and inclusion. Artificial intelligence (AI), automation and other rapidly developing digital technologies. More permanent shifts to hybrid and remote work environments. Shifting customer preferences and demographics. Big data analytics.

The global marketplace is dramatically impacted by these and a host of other notable risk drivers triggering significant levels of uncertainties that make it extremely difficult for an organization’s leaders to anticipate what risks may lie just over the horizon. Unanticipated events are unfolding at record pace, leading to massive challenges to identify the best next steps for organizations of all types and sizes, regardless of where they reside in the world. As no one is immune to uncertainty, C-suites and boards need to be vigilant in scanning the horizon for emerging issues. Because it is impossible to anticipate everything of significance that lies in the future, organizations must focus on building trust-based, resilient cultures that can pivot at the speed of change.

One of the first questions an organization seeks to answer in risk management is, “What are our most critical risks?” The organization’s answer to this question lays the foundation for management to respond with appropriate capabilities for managing these risks. Protiviti and NC State University’s ERM Initiative are pleased to provide this report focusing on the top risks for the short term — 2022 — and the long term — 2031 — from 1,453 respondents in C-suite and board positions in organizations around the globe.

  1. Organization's succession challenges and ability to attract and retain top talent in a tightening talent market may limit ability to achieve operational targets
  2. Economic conditions in markets we currently serve may significantly restrict growth opportunities
  3. Anticipated increases in labor costs may affect ability to meet profitability targets
  4. Resistance to change may restrict the organization from making necessary adjustments to the business model and core operations
  5. Uncertainty surrounding core supply chain ecosystem
  6. Changes in the overall work environment may lead to challenges in sustaining culture and the conduct of the business
  7. Adoption of digital technologies may require new skills in short supply, requiring significant efforts to reskill/upskill employees
  8. Organization's culture may not sufficiently encourage the timely identification and escalation of risk issues
  9. Approach to managing demands on or expectations of a significant portion of workforce to work remotely or as part of a hybrid work environment
  10. Organization may not be sufficiently resilient and/or agile to manage an unexpected crisis
  1. Organization's succession challenges and ability to attract and retain top talent in a tightening talent market may limit ability to achieve operational targets
  2. Adoption of digital technologies may require new skills in short supply, requiring significant efforts to reskill/upskill employees
  3. Rapid speed of disruptive innovations enabled by new and emerging technologies and/or other market forces may outpace ability to compete
  4. Resistance to change may restrict the organization from making necessary adjustments to the business model and core operations
  5. Ensuring privacy and compliance with growing identity protection expectations may require significant resources
  6. Existing operations and legacy IT infrastructure may not be able to meet performance expectations as well as "born digital" competitors
  7. Inability to utilize data analytics and "big data" to achieve market intelligence and increase productivity and efficiency
  8. Economic conditions in markets we currently serve may significantly restrict growth opportunities
  9. Regulatory changes and regulatory scrutiny may heighten, noticeably affecting how products or services will be produced or delivered
  10. Anticipated increases in labor costs may affect ability to meet profitability targets
Key issues being discussed in the boardroom and C-suite

Explore our survey results

  • Major Themes for 2023 and 2032
  • Top Risk Concerns for 2023
  • Top Risk Concerns for 2032
  • A Series of Calls to Action
  • Analsys Across Industry Groups
  • Analsys Across Executive Positions
  • Geographic Region landing page
  • Organization Size landing page
  • Organization Type landing page
Key issues being discussed in the boardroom and C-suite

Resources and Download Materials

Executive Summary

This executive summary provides a brief description of our methodology and an overview of the overall risk concerns for 2022 and 2031, followed by a review of the results by type of executive position.

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Full Report

Our full report contains extensive analysis of key insights about top risk concerns across a number of different dimensions, including a breakdown by industry, size of company, type of ownership structure, and geographic locations of company headquarters.

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Infographic

Ongoing challenges triggered by a once-in-a-century airborne pandemic continue to unfold, reminding executives that the range of uncertainties has triggered an overwhelming landscape of ever-changing risks they must manage. Considering the rapid pace of disruptive innovation and technological developments in a rapidly ...

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A Call to Action

The ongoing events continue to present major challenges as we move into 2022. The level of uncertainty in today’s marketplace is rapidly evolving and presenting new risks that many previously thought were unimaginable.

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Podcast

Listen to our Podcast to under the key findings.

 

Press Release

Global Leaders Expect Challenges of Retaining, Attracting and Developing Top Talent Will Persist Over Next Decade, Protiviti-NC State University Survey Finds

 

Webinar On Demand

Please join us for an exhilarating discussion of these and other top risks identified in our report findings.

 
Last year, we referred to the future of work as one of the defining business challenges of the disruptive 2020s. This year, we’re doubling down on that prediction. Not only is this risk the top issue for the next decade for the second straight year, but the increasing cost of labor and acute talent shortages are making the business case for automating manual-intensive activities more compelling.
Kim Bozzella
Global Leader, Technology Consulting, Protiviti
In reviewing year-over-year risk levels in all six industry groups we examined looking out 12 months and over the next decade, our respondents are apparently more comfortable with the risk landscape near term as the pandemic transitions to an endemic state. But they are casting a wary eye toward the prospect of increasingly complex and competitive markets as the disruptive 2020s unfold.
PAT SCOTT
Executive Vice President, Global Industry, Client Programs and Marketing, Protiviti
An interesting aspect of our annual study is the differing points of view among the participating executives and directors regarding the magnitude and severity of risks the disparity noted in our results suggests the need for dialogue at the highest levels of an organization to ensure that everyone is one the same page about the most important risks that should command the organization’s focus and resources.
Bruce Branson
Professor of Accounting and Associate Director of Enterprise Risk Management Initiate. Poole College of Management. NC State University
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