Protiviti partnered with North Carolina’s State University’s ERM Initiative to conduct their third-annual Executive Perspectives on Top Risks Survey and obtained the views of more than 275 board members and C-suite executives about risks that are likely to affect their organization in 2015.
The survey findings suggest that while the business environment in 2015 will be somewhat less risky than in the previous two years, most of the business leaders surveyed indicated that they are more likely to invest in additional risk management resources in 2015.
- Overall, survey responses suggest a global business environment in 2015 that is somewhat less risky for organizations than it was in the previous two years – Most respondents indicated their organizations are more likely to invest additional resources toward risk management in 2015 compared to both 2014 and 2013. This seems consistent with the view that expectations for more effective risk oversight are on the rise for most organizations.
- The top 10 risks overall vary in nature – There are growing concerns about operational risk issues, with six of the top 10 risks representing operational concerns. Three of the top 10 risks relate to strategic risk concerns, with only one related to concerns about macroeconomic issues. In our two prior surveys, respondents expressed greater concerns over strategic risk issues.
- With respect to the top five risks overall:
- Regulatory change and heightened regulatory scrutiny – This risk continues to represent the top overall risk for the third consecutive year for most organisations.
- Economic conditions in domestic and international markets – While stabilized at 2014 levels, this risk is again highly ranked.
- Concerns about cyberthreats disrupting core operations – With little surprise, this risk is now a top five concern for 2015, as well as the top operational risk overall and for the largest organisations.
- Succession challenges and the ability to attract and retain talent – This risk made the top five risk list for all sizes of organizations, likely triggered by a tightening labor market (though the decline in unemployment rates has been relatively modest), and the respondents’ perception that significant operational challenges may arise if organizations are unable to sustain a workforce with the skills needed for growth.
- Organisation’s culture not supporting timely risk identification and escalation – Respondents ranked this risk (new to this year’s survey) as a top five risk concern.