Top risk concerns for 2032 Our organisation's succession challenges and ability to attract and retain top talent and labor amid the constraints of a tightening talent/labor market may limit our ability to achieve operational targets The adoption of digital technologies (e.g., artificial intelligence, automation in all of its forms, natural language processing, visual recognition software, virtual reality simulations) in the marketplace and in our organisation may require new skills that either are in short supply in the market for talent or require significant efforts to upskill and reskill our existing employees Rapid speed of disruptive innovations enabled by advanced technologies (e.g., artificial intelligence, automation in all of its forms, hyper-scalable platforms, faster data transmission, quantum computing, blockchain, digital currencies and the metaverse) and/or other market forces may outpace our organisation's ability to compete and/or manage the risk appropriately, without making significant changes to our business model Resistance to change in our culture may restrict our organisation from making necessary adjustments to the business model and core operations on a timely basis Ensuring data privacy and compliance with growing identity protection expectations and regulations may require alterations demanding significant resouces to restructure how we collect, store, share and use data to run our business Our existing operating processes, in-house talent, legacy IT infrastructure, lack of digital expertise and/or insufficient digital knowledge and proficiency in the C-suite and boardroom may result in failure to meet performance expectations related to quality, time to market, cost and innovation as well as our competitors, including those that are either "born digital" or investing heavily to leverage technology for competitive advantage Inability to utilise data analytics and "big data" to achieve market intelligence, gain insights on the customer experience, and increase productivity and efficiency may significantly affect our management of core operations and strategic plans Economic conditions (including inflationary pressures) in markets we currently serve may significantly restrict growth opportunities, impact margins or require new skill sets for our organisation Regulatory changes and scrutiny may heighten, noticeably affecting the way our processes are designed and our products or services are produced or delivered Anticipated increases in labor costs may affect our opportunity to meet profitability targets View full breakdown Executives and boards are clearly focused on whether their organisations will be able to attract the talent they need to remain competitive. Notable observations Executives and boards are clearly focused on whether their organisations will be able to attract the talent they need to remain competitive, with that concern affecting them now and perceived to be a challenge a decade from now. Human capital management is top of mind. Several of the long-term top risk concerns relate to technology and innovation. This interaction between talent and technology is reflected by the second-highest risk for 2032 — perceived challenges associated with being able to attract the talent and skills needed to position the organisation to adopt and deploy digital technologies to remain competitive in the marketplace. That same kind of talent and technology interaction is also indicated by respondent concerns that existing legacy IT operations, lack of in-house IT talent, and limited digital thinking and expertise, particularly in the C-suite, may make it difficult for the organisation to compete in a digital marketplace. Clearly, talent and technology concerns are intertwined over the long term. As executives and boards look a decade out, they are focused on the potential for new regulations to emerge as expectations around what is deemed acceptable continue to shift. Perhaps, as respondents reflect on rapidly shifting expectations over the last decade — or even recent years — related to social, privacy and environmental issues, among other changes, they are projecting ahead a similar noticeable shift as they keep a wary eye on potential scenarios and developments over the next decade. Executives and boards are clearly focused on whether their organisations will be able to attract the talent they need to remain competitive. Survey December 8, 2022 Executive Perspectives on Top Risks for 2023 and 2032 The level of uncertainty in today’s global marketplace and the velocity of change continue to produce a multitude of potential risks that can disrupt an organisation’s business model and strategy on very short notice. Read more
