From threats to transformation: The key risks and opportunities shaping government strategy

Legacy infrastructure has become a significant near-term risk as aging systems struggle to meet performance, security and interoperability expectations. Survey respondents highlight ecosystem development (53%) as a key opportunity to accelerate modern platforms, cloud adoption and data digitization without carrying the full burden of cost or talent. Protiviti supports this shift by helping agencies re-platform systems, migrate securely to cloud environments and strengthen data governance to improve service efficiency.

Government leaders cite laws and regulations as the top AI-related challenge (29%), with inconsistent jurisdictional rules and heightened scrutiny around fairness, privacy and transparency slowing deployment. Concerns about moving too quickly without the right safeguards also feature prominently. Protiviti supports agencies with responsible AI governance, data-quality standards and transparency frameworks that help meet regulatory expectations while enabling progress.

Cyber threats now rank as the number one near-term risk, fueled by ransomware attacks targeting municipal systems, law-enforcement databases and public-service infrastructure. Third-party risk has also surged to the top due to reliance on infrastructure vendors and foreign-sourced technology. Protiviti helps agencies strengthen resilience through zero-trust security architectures, SOC capabilities and vendor-risk controls that address these escalating exposures.

Government leaders ranked data privacy (50%) and infrastructure modernization (43%) among their highest priorities as digital services expand and AI pilots accelerate. Investments focus on secure cloud migration, upgrading legacy systems and establishing strong data-governance practices to meet regulatory expectations. Protiviti supports agencies in building privacy-by-design frameworks, modern service layers and secure cloud environments that improve performance and compliance.

Over the next decade, security and privacy (56%) remain the top long-term concerns as governments expand digital services and deepen third-party relationships. Sustainability ranks second as climate risks and regulatory expectations drive resilience planning. Protiviti helps agencies strengthen cybersecurity frameworks, modernize systems for long-term resilience and embed data-driven approaches that support sustainable, secure public-sector operations.