The top 10 business risks of 2018
Orlando Accountant
The increased risk of technological developments along with disruptive innovations and organizational opposition to change are the main concerns of business leaders and various boards of directors in the globe heading into 2018. This finding comes from the sixth annual Executive Perspectives on Top Risks Survey carried out by the Enterprise Risk Management initiative and global consulting firm Protiviti. The report highlights the concern of 728 executives and board members globally.
The top 10 risks of 2018
The Executive Perspective on Top Risks for 2018 report identified the following as the top 10 risks;
- 1. Blistering speed of new technologies and/or disruptive innovations may outrun our organizations capability to compete and/or handle varying risk suitably, without causing changes to our business setup and model
- 2. Resistance to change might restrain our organizations from carrying out necessary adjustments to our core operations and business model.
- 3. Our organization may not be adequately prepared to handle cyber threats
- 4. Regulatory scrutiny and regulatory changes may heighten
- 5. Our organization's culture may not sufficiently support the swift identification as well as the escalation of risk issues
- 6. Our organization's succession difficulties and capabilities to retain and attract the best talent may restrict our efforts to attain operational targets
- 7. Ensuring that information/security information and privacy/identity management are protected my need enormous resources from us
- 8. Economic conditions of the markets we are involved in my limit our growth opportunities
- 9. Inability to make use of big data and data analytics to gain market intelligence and enhance efficiency and productivity may greatly affect our management of strategic plans and core operations
- 10. Our existing operations may be restricted to meet performance expectations in relation to time to market, quality, cost and innovation and also our competitors, most especially the emerging competitors that are digitally inclined and with a low operational cost base.
From an industrial perspective, the utility industry group and the financial services and energy groups enjoyed the most significant fall in overall risk concerns in comparison to 2017. This decrease may be due to the reduction in fears of regulatory change and macroeconomic risks, as shown in survey findings. The media, communications, and technology industry group showed the most significant interest in regards to the severity and magnitude of risks overall.
Dr. Mark Beasley, Director of NC State's ERM initiative and Deloitte Professor of Enterprise Risk Management said "In regards to the shifting risk landscape, it is interesting to see a heightened concern from survey respondents that each of their organization's culture isn't sufficient to carry out timely identification as well as escalation of risk issues to the board and senior management. As senior executives and boards of directors look for ways to improve their comprehension of new risk issues, there is the need for them to re-evaluate how each of their organization's structure may be impacting the robustness of their risk reporting and risk identification efforts."
The 2018 Executive Perspective on Top Risks for 2018 survey was carried out in the fall of 2017. The respondents are from non-U.S. based organizations and U.S. Based organizations across private and public sectors.