The 12th annual survey, titled “Executive Perspectives on Top Risks for 2024 and a Decade Later,” conducted by the Enterprise Risk Management (ERM) Initiative and Protiviti, provides insights from over 1,143 board members and C-suite executives worldwide. The survey rates 36 macroeconomic, strategic, and operational risks on a 1-10 scale for both one-year (2024) and one-decade (2034) time horizons.
Top Risk Themes for 2024: Economic pressures and persistent inflation have surpassed the war for talent as the top near-term risk globally. Cyber threats also emerged as the top long-term concern for business leaders over the next decade. Key risks for 2024 include economic conditions, talent management, cyber threats, third-party risks, and heightened regulatory changes.
Emerging Risks for 2024: Six risks, including the top near-term risk, dropped out of the top ten list for 2024. Economic conditions and inflation are identified as the primary near-term risks. Talent retention and cyber threats also remain major concerns.
Geopolitical Impact: Geopolitical events, particularly those in the Middle East on October 7, 2023, had a significant impact on the risk landscape. Following these events, several risks saw increased ratings, with four issues reaching the “Significant Impact” level for 2024.
Top Risks for 2034: Looking a decade ahead, the top risks for 2034 include cyber threats, talent management, adoption of digital technologies requiring new skills, disruptive innovations, and heightened regulatory changes. Cybersecurity stands out as the most pressing risk issue, with an 11% increase in risk rating compared to the previous year.
Technology and Cybersecurity Outlook: The report emphasizes the growing recognition of the complex cyber risk landscape, influenced by technological advances. As technologies like artificial intelligence, cloud, and quantum computing emerge, organizations must adapt quickly. The increasing reliance on outsourcing and co-sourcing arrangements introduces cyber threat risks, requiring organizations to ensure compliance with laws and regulations to secure their data and customer information.
Call to Action: The survey suggests key actions for executives to address risks and enhance the chances of future success. This includes focusing on areas such as AI, economy/inflation, cyber issues, talent strategies, and geopolitical risks.
In summary, the survey highlights the evolving risk landscape, emphasizing the need for organizations to address economic challenges, talent management, and, notably, the escalating threats posed by cyber issues over the coming decade. Executives are urged to take strategic actions to navigate these risks and position their companies for success.