A new survey is taking a look into the future to consider what the top risks may look like in 2034. The survey, conducted by Protiviti, finds that cybersecurity and risks from emerging technology are likely to still be at the center of risk management efforts in the next decade. It also find that people-related risks, such as talent management and shortage of required skills, will also be of great concern to many organizations.
Among the top findings of the Protiviti survey are:
Cybersecurity is the most pressing risk issue. When combining near- and long-term views, cyber threats arguably stand out as the most significant risk issue for boards and C-suite leaders.
People-related risks are top concerns. Finding and keeping talent is the second-highest-ranked risk looking out over the long term. Shortages of new skills in the market necessitate significant efforts to upskill/reskill existing employees; this is the third-ranked risk. Additionally, increases in labor costs represent the ninth-ranked risk for 2034.
More disruptive times lie ahead. Six of the top 10 risks looking out 10 years are rated at the “Significant Impact” level (versus only three last year). The dynamic risk landscape and its elevated risk levels sustain the ongoing narrative that the 2020s are indeed a decade in which disruption will manifest itself in many ways.
“The rapid speed of disruptive innovations is on global leaders’ radar. Advances in AI, automation in all its forms, quantum computing and other technologies are driving waves of disruption that will impact business models and alter customer experiences,” the report’s author’s write.
Top Risks for 2034
1. Organization may not be sufficiently prepared to manage cyber threats, including ransomware, which could disrupt core operations or damage the brand.
2. Organization’s ability to attract and retain top talent, manage shifts in labor expectations and address succession challenges may limit its ability to achieve operational targets.
3. Adoption of digital technologies may require new skills that are in short supply, requiring significant efforts to upskill and reskill existing employees.
4. The rapid speed of disruptive innovations enabled by new and emerging technologies or other market forces may outpace the organization’s ability to compete without significant changes to the business model.
5. Regulatory changes and scrutiny may heighten, noticeably affecting the way processes are designed and products or services are produced or delivered.
6. Third-party risks arising from reliance on outsourcing and strategic partnership arrangements may prevent meeting organizational targets or impact brand image.
7. Economic conditions in the company’s markets may significantly restrict growth opportunities.
8. Existing operations and legacy information technology infrastructure may not be able to meet performance expectations as well as “born digital” competitors or those investing heavily in technology for competitive advantage.
9. Anticipated increases in labor costs may affect the ability to meet profitability targets.
10. An inability to utilize data analytics and “big data” may prevent achieving market intelligence and increasing productivity and efficiencies.
The study, conducted in late 2023, captured insights from 1,134 C-level executives and directors across multiple industries. 