MENLO PARK, Calif.,
Dec. 8, 2016 /PRNewswire/ -- Recent
global uncertainties and their potential effects on businesses are
top of mind for board members and executive management teams as
they assess their risks for 2017, according to the results of the
fifth annual survey of business executives by global consulting
firm Protiviti and the Enterprise Risk Management (ERM) Initiative
at the North Carolina State University
Poole College of Management.
Executive Perspectives on Top Risks for 2017
(www.protiviti.com/toprisks), released today, assesses the concerns
of 735 board members and executives across a variety of industries
who participated in the global survey. The respondents rated the
perceived severity of macroeconomic, strategic and operational
risks to their businesses for the coming year.
Nearly three-quarters of the survey respondents (72 percent)
indicated that uncertainties related to economic conditions may
have a significant impact on their businesses in 2017 to a greater
extent than in previous years. Cumulatively, the overall scores for
the top 10 risks have increased since last year's survey, with the
economy being even more of a concern in markets outside the
U.S.
"Our survey results support a shift we've seen in the focus of
board members and c-suite executives towards risks associated with
international and domestic economic conditions, regulatory scrutiny
and cyber threats," said Dr. Mark
Beasley, Deloitte Professor of Enterprise Risk Management
and NC State ERM Initiative director. This shift is especially
highlighted for organizations in the Asia-Pacific and European regions.
Interestingly, results indicate, however, that organizations are
not planning to invest additional resources in enhancing their
approaches to risk management over the next 12 months."
The Top 10 Risks for 2017
Following are the top 10 risks identified in this annual risk
survey, along with the percentages of respondents who identified
each risk as having a "Significant Impact" on their business*.
- Economic conditions in markets we currently serve may
significantly restrict growth opportunities for our organization.
(72 percent)
- Regulatory changes and regulatory scrutiny may heighten,
noticeably affecting the manner in which our products or services
will be produced or delivered. (66 percent)
- Our organization may not be sufficiently prepared to manage
cyber threats that have the potential to significantly disrupt core
operations and/or damage our brand. (60 percent)
- Rapid speed of disruptive innovations and/or new technologies
within the industry may outpace our organization's ability to
compete and/or manage the risk appropriately, without making
significant changes to our business model. (63 percent)
- Ensuring privacy/identity management and information
security/system protection may require significant resources for
us. (57 percent)
- Our organization's succession challenges and ability to attract
and retain top talent may limit our ability to achieve operational
targets. (55 percent)
- Anticipated volatility in global financial markets and
currencies may create significantly challenging issues for our
organization to address. (53 percent)
- Our organization's culture may not sufficiently encourage the
timely identification and escalation of risk issues that have the
potential to significantly affect our core operations and
achievement of strategic objectives. (55 percent)
- Resistance to change may restrict our organization from making
necessary adjustments to the business model and core operations.
(54 percent)
- Sustaining customer loyalty and retention may be increasingly
difficult due to evolving customer preferences and/or demographic
shifts in our existing customer base. (57 percent)
*Note, the Top Ten Risks are defined and weighted based on the
index ranking, which was compiled on a 1-10 scale; this included
significant impact (6-10), potential impact (5), and less
significant impact (1-4).
"Executives are concerned about their companies' ability to keep
pace with the rapid speed of change, including disruptive
innovations and new technologies within their industries," said
Patrick Scott, Protiviti EVP of
Industry Groups. "While the effects may vary across industry groups
in terms of different risk profiles, our study shows that no
industry is immune to future uncertainty in a changing world."
"The need for greater transparency around the nature and
magnitude of the risks associated with executing an organization's
corporate strategy will continue to be high into next year," said
Jim DeLoach, a managing director
with Protiviti. "Volatile markets, intensifying competition,
demanding regulatory requirements, fear of catastrophic events and
other dynamic forces are leading to an increasing imperative for
management to identify and assess the organization's key risk
exposures and then design and implement effective capabilities to
manage those exposures. This imperative sets a powerful context for
strong board-level engagement and risk oversight in 2017."
The survey was conducted in the fall of 2016. Respondents
represent both U.S.-based and non-U.S. organizations across public
and private sectors. The survey report also provides detailed
insights broken out by size and type of company, respondent role
and industry.
Resources Available
The "Executive Perspectives on Top Risks for 2017" report from
Protiviti and the NC State Poole College ERM Initiative, along with
an infographic and a podcast highlighting the survey results, are
available for complimentary download at www.protiviti.com/toprisks.
A complimentary 60-minute webinar exploring the implications of the
survey results will be held December 15,
2016 at 10:00 a.m. PST,
featuring NC State's Dr. Mark Beasley and Protiviti's Patrick Scott and Jim
DeLoach.
About the NC State University Poole College ERM
Initiative
The Enterprise Risk Management (ERM) Initiative in the Poole
College of Management at North Carolina State
University provides thought leadership about ERM practices
and their integration with strategy and corporate governance.
Faculty in the ERM Initiative frequently work with boards of
directors and senior management teams helping them link ERM to
strategy and governance, host executive workshops and educational
training sessions, and issue research and thought papers on
practical approaches to implementing more effective risk oversight
techniques (www.erm.ncsu.edu).
About Protiviti
Protiviti (www.protiviti.com) is a global consulting firm that
delivers deep expertise, objective insights, a tailored approach
and unparalleled collaboration to help leaders confidently face the
future. Through its network of more than 70 offices in over 20
countries, Protiviti and its independently owned Member Firms
provide clients with consulting solutions in finance, technology,
operations, data analytics, governance, risk and internal
audit.
Protiviti has served more than 60 percent
of Fortune 1000® and 35 percent
of Fortune Global 500® companies.
The firm also works with smaller, growing companies, including
those looking to go public, as well as with government agencies.
Protiviti is a wholly owned subsidiary of Robert
Half (NYSE: RHI). Founded in 1948, Robert Half is a
member of the S&P 500 index.
Protiviti is not licensed or registered as a public
accounting firm and does not issue opinions on financial statements
or offer attestation services.
Editor's note: Infographic (in PDF and JPEG formats) and photos
available upon request.
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