Protiviti recently partnered with North Carolina’s State University’s ERM Initiative to conduct its second annual ‘Executive Perspectives on Top Risks Survey’. This obtained the views of more than 370 United States-based board members and C-suite executives about risks that are likely to affect their organization in 2014.
Key findings included:
- The overall survey responses suggest a business environment in 2014 that is slightly less risky for organizations than it was a year ago - however, board members view it to be more risky this year compared to 2013.
- Regulatory change and heightened regulatory scrutiny represents the top overall risk for the second consecutive year.
- Cyber threats and privacy/identity management are seen as an increasing threat.
The top 10 risks as perceived by executives are:
1. Regulatory changes and heightened regulatory scrutiny may affect the manner of production or delivery of products or services;
2. Economic conditions will significantly restrict growth opportunities;
3. Uncertainty surrounding political leadership in national and international markets will limit growth opportunities;
4. Succession challenges and the ability to attract and retain top talent may limit the ability to achieve operational targets;
5. Organic growth through customer acquisition and/or enhancement presents a significant challenge;
6. Cyber threats have the potential to disrupt core operations significantly;
7. Resistance to change may restrict necessary adjustments to the business model and core operations;
8. Privacy/identity management and information security/system protection will be significant issues to manage;
9. Anticipated volatility in global financial markets and currencies will create challenging issues;
10. Uncertainty surrounding costs of complying with healthcare reform legislation will limit growth opportunities.
•Date: 11th February 2014 • US •Type: Article • Topic: Enterprise risk management