Executive Perspectives on Top Risks for 2023 and 2032

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

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 organization’s business model and strategy on very short notice. Unfolding events in Eastern Europe, changes in government leadership in several countries around the globe, escalating inflation, rising interest rates, ever-present cyber threats, competition for talent and specialized skill sets, continued disruptions in global supply chains, rapidly developing technologies … these represent just a sampling of the complex web of drivers of risks that may threaten an organization’s achievement of its objectives. Uncertainty and risk are here to stay. Keeping abreast of emerging risk issues and market opportunities is critical to improving organizational resilience.

To help executives and boards better identify potential risks on the horizon, Protiviti and NC State University’s ERM Initiative are pleased to provide this report focusing on the top risks currently on the minds of boards of directors and senior executives around the globe. This report contains results from our 11th annual worldwide risk survey of more than 1,300 directors and executives to obtain their views on the extent to which a broad collection of risks is likely to affect their organizations over the next year — 2023. In addition to insights about near-term risks in 2023, we also asked respondents to consider how these risks will affect their organizations a decade from now (in 2032).

  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
We appreciate the support our annual survey continues to receive from board members and C-level executives around the world. I believe that the insights and recommendations in this report reflect the challenges and opportunities of our times and merit close attention in the boardroom and C-suite.
Pat Scott

Resources and Download Materials

Executives are signaling that all of the risks examined are highly relevant, demonstrating that organizations need to be scanning the horizon not only with a lens on operations within the organization but also with an external view that considers emerging macroeconomic and strategic shifts.
Mark Beasley
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