While macro risks like the economy and supply chain strains remain serious threats, talent risks are the top challenges worrying senior decision-makers.
Protiviti and North Carolina State University’s Enterprise Risk Management Initiative surveyed 1,300 executives worldwide, asking them to rate 38 macroeconomic, strategic and operational risks for 2023 and a decade ahead. The same risk topped the list for both timeframes: “Organization’s succession challenges and ability to attract and retain top talent in a tightening talent market may limit ability to achieve operational targets.”
Two additional talent risks made the top five for 2023: increased labor costs and resistance to change in company culture.
Looking forward, concerns about talent attraction and succession planning were compounded by concerns about the imperative for “tomorrow’s talent to become fluent” in quickly evolving and newly emerging technologies. The second-highest risk for 2032 was that “adoption of digital technologies may require new skills in short supply, requiring significant efforts to reskill/upskill employees.”