Analysis Across Different Sizes of Organizations Notable observations Organizations of all sizes perceive an increase in the magnitude and severity of risks for their organizations in comparison to 2022 and, except for the largest organizations (those with revenues exceeding $10 billion), they see an increase above 2021. Three risks are common top five risks across all size groups for 2023: (1) Concerns about succession challenges and the ability to attract and retain top talent, (2) worries that increases in labor costs may hinder growth or impact margins, and (3) concerns that economic conditions (and inflationary pressures) in markets served may affect growth and profitability. Considering the changes in labor markets, it is not surprising that succession challenges and the ability to attract top talent is the top-rated risk for all companies with revenues greater than $100 million. Additional top five risks are related to the significant changes brought on by technology. All four size categories have two common risks listed in their top five risks for 2032, with one being operational and the other strategic. All four size categories of organizations are concerned that the rapid speed of disruptive innovation may outpace their ability to compete a decade from now. As well, all four size groups include the risk of succession challenges and the ability to attract and retain top talent in a tightening talent market as a top five 2032 risk concern (as is also true for the coming year, 2023). Each of the three largest organizational categories also shares concerns about the adoption of digital technologies (e.g., AI, automation in all of its forms, natural language processing, AR/ VR and other technologies), with the largest firms listing this as their top risk for 2032. The three largest-sized organizational categories also share the risk that resistance to change within their culture may restrict them from making necessary adjustments to the business model and core operations on a timely basis in the face of market developments. View more detailed results and insights from these organizations: Revenues $10 billion or greater Revenues $1 billion to 9$9.99 billion Revenues $100 million to $999 million Revenues less than $100 million 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 organization’s business model and strategy on very short notice. Read more
