Top Risks for 2014

00016882Protiviti, a consulting firm, and North Carolina State University Enterprise Risk Management Initiative released the results of a joint study “Executive Perspectives of Top Risks for 2014”.  The survey contained responses from over 370 board members and executives from various industries.  The top 10 risk concerning these board members and executives are:

  1. Regulatory changes and heightened regulatory scrutiny may affect the manner in which our products or services will be produced or delivered”

  2. Economic conditions in markets we currently serve will significantly restrict growth opportunities for our organization”

  3. Uncertainty surrounding political leadership in national and international markets will limit growth opportunities”

  4. Succession challenges and the ability to attract and retain top talent may limit our ability to achieve operational targets”

  5. Organic growth through customer acquisition and/or enhancement presents a significant challenge”

  6. Cyber threats have the potential to significantly disrupt core operations for our organization”

  7. Resistance to change will restrict our organization from making necessary adjustments to the business model and core operations”

  8. Ensuring privacy/identity management and information security/system protection will require significant resources for us”

  9. Anticipated volatility in global financial markets and currencies will create challenging issues for our organization to address”

  10. Uncertainty surrounding costs of complying with healthcare reform legislation will limit growth opportunities for our organization”

It is the job of board members and executives to identify risks that face their company and then provide guidance on how to minimize the effects of these risks.  It is no surprise, given our current political and economic environment, that the political and economic uncertainty tops the lists of concerns.  The survey results also does lead one to believe that board members and executives do not have a rosy outlook for growth in the coming year.

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