As Regulations Change, Risks Stay the Same

Hilary Tuttle

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May 2, 2016

regulatory risk

For the fourth consecutive year, board members and top-level executives see regulatory change and heightened regulatory scrutiny as the year’s top risk.

In a survey on the current risk environment by consulting firm Protiviti and the Enterprise Risk Management Initiative at North Carolina State University’s Poole College of Management, 60% of respondents believe regulatory risk will continue to have a significant impact on their organizations and are concerned about the impact global regulations will have on strategy.

Tied for first place, 60% of respondents also cited “economic conditions in markets currently served may significantly restrict growth opportunities” as a risk with significant possible impact in 2016.

Cyber rounded out the top three, with 57% saying their organization may not be sufficiently prepared to manage cyberthreats that could significantly disrupt core operations or damage the company’s brand.

Hilary Tuttle is senior editor of Risk Management.