Regulation, economy top list of risks of executives and boards.
Regulatory changes and scrutiny, global economic conditions and an unstable political climate are the top risks on the minds of corporate leaders, according to Executive Perspectives on Top Risks for 2013, a recently released report of findings from global consulting firm Protiviti and the Enterprise Risk Management (ERM) Initiative at North Carolina State University's Poole College of Management.
The survey, which sought the views of more than 200 board members and C-level executives across a wide variety of industries about the risks their organizations expect to face in 2013, asked participants to rate a list of 20 risk issues on a scale of one to 10, with one indicating "no impact" and 10 indicating "extensive impact."
According to the results, the top 10 risks rated as having the greatest impact in 2013 are:
RANK RISK ISSUE INDEX 1. Regulatory changes and heightened 6.8 regulatory scrutiny may 6.8 affect the manner in which our products or services will be produced or delivered. 2. Economic conditions in markets we 6.5 currently serve will significantly restrict growth opportunities for our organization. 3. Uncertainty surrounding political 6.0 leadership in national and international markets will limit growth opportunities. 4. Organic growth through customer 5.5 acquisition and/or enhancement presents a significant challenge. 5. Succession challenges and the 5.5 ability to attract and retain top talent may limit our ability to achieve operational targets. 6. Anticipated volatility in global 5.4 financial markets and currencies will create challenging issues for our organization to address. 7. Cyberthreats have the potential to 5.4 significantly disrupt core operations for our organization. 8. Ensuring privacy/identity management 5.4 and information security/system protection will require significant resources for us. 9 Resistance to change will restrict 5.2 our organization from making necessary adjustments to the business model and core operations. 10. Our existing operations may not be 4.9 able to meet performance expectations related to quality, time to market, cost and innovation as well as our competitors.
Mark Beasley, Deloitte professor of enterprise risk management and director of the ERM Initiative at NC State's Poole College of Management, adds that the growing dependency on a global economy has increased the need to anticipate and manage risk around political uncertainties and volatility in global financial markets.
"While the largest companies may often seem to have the greatest international exposure to these risks, the reality is that few organizations are immune to the vagaries of the global economic and financial markets and the related impact on demand, rates, credit availability and currencies," says Beasley.
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|Author:||Heffes, Ellen M.|
|Date:||Apr 1, 2013|
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