Focus on Resilience and the Workforce are Key to Addressing Business Leaders’ Top Risk Concerns Over the Next Decade, Protiviti-NC State Global Survey Finds Global survey of business leaders reveals pandemic-associated risks are currently top-of-mind, while technology disruptions and the future of work are concerns for the next decade.MENLO PARK, CA - February 3, 2021 – Board members and C-suite executives around the globe are most concerned in 2021 with risks associated with COVID-19-related government policies and regulations, economic conditions that may restrict growth and market conditions that may continue to impact customer demand, according to a new survey from Protiviti and North Carolina State University. Amid these near-term headwinds, when asked about top concerns through 2030, business leaders cite challenges that ultimately ladder up to talent. High ranking risks – including the adoption of technology that requires new or upgraded skills, rapid innovation that threatens business models and the reimagining of creative strategies – point to a need to attract and retain top talent and invest in reskilling and upskilling workforces to ensure agility and resilience in the future.The annual survey, this year titled “Executive Perspectives on Top Risks for 2021 and 2030,” was conducted by global consulting firm Protiviti and North Carolina State University Poole College of Management’s Enterprise Risk Management (ERM) Initiative. In its ninth year, the survey was conducted following the November 3 U.S. elections to reduce the influence that an uncertain outcome could potentially have on survey results. The study surveyed over 1,000 (1,081) board members and C-suite executives from organisations in a variety of industries and in all regions around the globe.The Top 10 Risks for 2021Survey respondents were asked to rate 36 macroeconomic, strategic and operational risks, including new risks that emerged this year related to the COVID-19 pandemic and social justice. The top 10 risks identified for 2021 are as follows:Pandemic-related policies and regulation impact business performanceEconomic conditions constrain growth opportunitiesPandemic-related market conditions reduce customer demandAdoption of digital technologies require new skills or significant efforts to upskill/reskill existing employeesPrivacy/identity management and information securityCyber threatsImpact of regulatory change and scrutiny on operational resilience, products and servicesSuccession challenges, ability to attract and retain top talentResistance to change operations and business modelAbility to compete with “born digital” and other competitors“More than ever, 2020 demonstrated that organisations can no longer afford a reactive approach to risk management. Pandemic risk loomed on the horizon for a long time – it was a matter of ‘when,’ not ‘if,’” said Jim DeLoach, a Protiviti managing director and co-author of the report. “Business leaders must be vigilant in scanning for emerging issues and make actionable plans to adjust their strategies and business models while being authentic in fostering a trust-based, innovative culture and the organisational resilience necessary to successfully navigate disruptive change. Digitally mature companies with an agile workforce were ready when COVID-19 hit and are the ones best positioned to continue to ride the wave of rapid acceleration of digitally driven change through the pandemic and beyond.”Consistent with the survey’s findings in previous years, data security and cyber threats again rank in the top 10 risks for both 2021 and 2030. The continuously evolving nature of cyber and privacy risks underscores the need for a secure operating environment in which nimble workforces can regularly refresh the technology and skills in their arsenal to remain competitive.“If there’s any risk that all organisations across industries and geographies must maintain focus on, it’s cybersecurity and privacy,” said Patrick Scott, executive vice president, Industry Programmes, Protiviti. “While the areas that businesses will need to address may change as they transform their business models and increase their resiliency to face the future confidently, cybersecurity and privacy threats will remain a constant and should be at or near the top of the list. These threats have been top risks for quite some time, and they aren’t going away.”The Top Risks for 2030New for this year’s survey, respondents also rated the expected impact of the same 36 risks on their organisations in 2030. The risk landscape of 2030 presents a markedly different picture, according to survey respondents who identified the following as the top 10 risks for 2030:Adoption of digital technologies may require new skills or significant efforts to upskill/reskill existing employeesImpact of regulatory change and scrutiny on operational resilience, products and servicesRapid speed of disruptive innovation outpace our ability to competeSuccession challenges, ability to attract and retain top talentPrivacy/identity management and information securitySubstitute products or services arise that affect our business modelSustaining customer loyalty and retention become more difficult as customer preferences and demographic shifts evolveAbility to compete with “born digital” and other competitorsInability to utilise data analytics and “big data” to achieve market intelligence and increase productivity and efficiencyCyber threatsTaking a decade-long view of the risk horizon, executives are concerned about the future of work, particularly when it comes to their organisation’s ability to adapt to emerging digital technologies and keep pace with the rapid speed of disruptive innovation. According to the survey results, an organisation’s ability to upskill and reskill employees as well as attract and retain top talent will be paramount to its risk management strategy in the decade ahead.Dr. Mark Beasley, professor of Enterprise Risk Management and director of NC State’s ERM Initiative and co-author of the report said, “Following a year of unprecedented adoption of digital tools across industries globally, businesses are facing heightened pressure to pivot to new skills, processes, products and services to meet evolving customer preferences, protect their brand value and remain competitive in an increasingly complex and automated world. One of the most important lessons that business leaders need to take away from 2020 is that they must prepare for a disruptive future by positioning their organisations to adapt and evolve with the speed of change.”The study’s report also includes a call to action, offering executives and directors diagnostic questions to consider when evaluating risk assessment and risk management processes.Resources AvailableThe “Executive Perspectives on Top Risks for 2021 and 2030” report from Protiviti and North Carolina State University provides respondent details broken out by company type, size, industry, geographic region and respondent role. The report, along with an infographic and a podcast about the survey results, is available for complimentary download here. Protiviti will host a one-hour webinar with a panel including Beasley, Bozzella, DeLoach, Scott and Manisha Shah, a Protiviti managing director and leader of the privacy practice, to discuss the implications of the survey’s findings on February 24, 2021 at 11:00 a.m. PST. Attendance is free with registration here.About the ERM InitiativeThe ERM Initiative (www.erm.ncsu.edu) in the Poole College of Management at North Carolina State University provides thought leadership to help executives and boards strengthen their oversight of enterprise-wide risks as they develop and implement strategies for growth. The ERM Initiative’s website hosts over 600 articles, thought papers, and best practices documents to help business leaders navigate today’s uncertainties for tomorrow’s strategic success. Über Protiviti Inc Protiviti ist ein global agierendes Beratungsunternehmen, das über umfassende Kompetenzen, individuelle Ansätze und einzigartige Kooperationen verfügt. Wir haben mehr als 80 Büros in über 20 Ländern und unterstützen führende Unternehmen dabei, der Zukunft mit Selbstbewusstsein zu begegnen. Protiviti bietet Lösungen in den Bereichen Finance, Technology, Governance, Risk und Internal Audit. Protiviti wurde vom Fortune Magazine in den letzten drei Jahren als eine der „100 Best Companies to Work For®“ ausgezeichnet. Zu unseren Auftraggebern zählen mehr als 60 Prozent der Fortune 1000® und 35 Prozent der Fortune Global 500® Unternehmen. Zudem kooperieren wir mit kleineren, wachsenden Unternehmen, einschließlich derer, die einen Börsengang anstreben sowie mit Regierungsbehörden. Protiviti ist ein eigenständiges Tochterunternehmen von Robert Half (Bezeichnung an der New Yorker Börse: RHI). Robert Half wurde 1948 gegründet und ist Mitglied des S&P 500 Indexes.