Regulatory changes, economic conditions and cyberthreats are the top concerns of board members and company executives this year, according to a new enterprise risk management survey. U.S.-based companies listed several operational risks as top concerns, while non-U.S. companies listed only one, cyberthreat, as a major concern, according to the report, Executive Perspectives on Top Risks for 2016, by North Carolina State’s ERM Initiative and Protiviti.
Overall, companies see the current business environment as riskier than in 2015, but not as risky as 2014. With increased inquiries and added concerns about risk from boards of directors and company executives, respondents indicated they will be investing more in risk management this year. “More organizations are realizing that additional risk management sophistication is warranted given the fast pace in which complex risks are emerging,” the study found.
Boards of directors rated only one strategic risk among their top five concerns, with the remaining falling into macroeconomic and operational risk categories. CEOs, on the other hand, saw strategic risks as three out of their top five issues.
According to the study:
“This disparity in the viewpoints emphasizes the critical importance of both the board and management team engaging in risk discussions, given their unique perspectives may be contributing to an apparent lack of consensus about the organization’s most significant emerging risks.”