Executive Perspectives on Top Risks 2019
Key Issues Being Discussed in the Boardroom and C-Suite
Leaders of organisations in virtually every industry, size of organisation, and geographic location are reminded all too frequently that they operate in what appears to many to be an increasingly risky global landscape. Escalating concerns about the rapidly changing business environment and the potential for unexpected surprises vividly illustrate the reality that organisations of all types face risks that can disrupt their business model over time and damage reputation almost overnight. Boards of directors and executive management teams cannot afford to manage risks casually on a reactive basis, especially considering the rapid pace of disruptive innovation and technological developments in an ever-advancing digital world.
Protiviti and North Carolina State University’s ERM Initiative are pleased to provide this report focusing on the top risks currently on the minds of global boards of directors and executives. This report contains results from our seventh annual risk survey of directors and executives to obtain their views on the extent to which a broad collection of risks is likely to affect their organisations over the next year.
The executive summary provides a brief description of our methodology and an overview of the overall risk concerns for 2019, followed by a review of the results by type of executive position. It concludes with a call to action offering a discussion of questions executives may want to consider as they look to strengthen their overall risk assessment and management processes.
Our full report (available at erm.ncsu.edu or protiviti.com/toprisks) contains extensive analysis of key insights about top risk concerns across a number of different dimensions, including a breakdown by industry, size of company, type of ownership structure, geographic locations of company headquarters, and whether the organisation has public debt.
Industry-wise Top Risks for 2019
Board members and C-suite executives view a somewhat riskier environment for business in 2019 compared to the prior two years, according to an annual survey from North Carolina State University’s ERM Initiative and Protiviti. The results suggest that organisations worldwide share a number of critical concerns.
- Shifting cultural norms and expectations of accountability
- Disruptive business models and "born digital" competitors amid resistance to change
- Innovations triggered by emerging technologies
- Shifting customer preferences and demographics
- Record lows in unemployment and tightening labour markets
- Cyber breaches on a massive scale
- Big data analytics