Boards and senior executives around the world are most concerned about uncertain economic conditions and future regulatory changes. Yet, almost half of the top risks that worry them are related to culture and talent, according to Executive Perspectives on Top Risks 2020. The report was published by North Carolina State University's Enterprise Risk Management Initiative and Protiviti Inc.
Businesses will need to retrain their employees, "particularly as digital innovations, such as artificial intelligence (AI), natural language processing, and robotics, become a mainstay in organizations," says
Jim DeLoach, a Protiviti managing director and co-author of the report.
More than 1,000 board members and executives rated 30 macroeconomic, strategic, and operational concerns. The top five were:
The impact of regulatory changes.
Economic conditions that may restrict growth opportunities.
Succession challenges, and attracting and retaining top talent.
Inability to compete with "born digital" competitors because of the limited resilience of legacy IT infrastructure.
Limited organizational agility because of resistance to change.
The report includes diagnostic questions boards and executives can use to examine how their organizations approach risk management and oversight in the digital age as...