Since the dawn of this decade, the world has been in a perpetual state of crisis. Whether COVID, geopolitical conflicts, macroeconomic events or other turmoil, risks are emerging, maturing and spawning devastating disruption before we even see them coming. This environment has been particularly challenging for risk managers and internal auditors, upon whose shoulders risk awareness and assurance often ride.

Faced with seemingly insurmountable odds when monitoring risks, we cannot simply throw up our hands in despair. Instead, we must constantly scan the horizon for clues about vulnerabilities that may be lurking.

Fortunately, each year, there are a handful of survey-based research reports that are highly anticipated for those of us who like to peer toward the risk horizon. They offer the perspectives of board members, executives, risk managers, internal auditors and others on issues and trends that are “keeping them awake at night.”

This week, another highly anticipated risk report is being released. The 12^th annual Executive Perspectives on Top Risks for 2024 and a Decade Later is a joint undertaking by North Carolina State University’s ERM Initiative and Protiviti.

I have been eagerly awaiting the report, which is based on a survey of more than 1,100 board members and executives worldwide, because of its unique ability to illuminate the risk outlook through the lens of the C-suite and boardroom. Once again, the annual report doesn’t disappoint. It is a must-read resource for internal auditors around the world as you undertake the critical process of assessing the risks facing your enterprises.

The authors offer a number of critical observations:

• Economic concerns have zoomed to the top risk position in the near term.
• Multiple sources of uncertainty are creating the potential for wide-ranging “near-term-horizon risks.”
• Recent geopolitical developments, including in the Middle East, are changing the global risk landscape.
• Myriad technology-related challenges dominate the top 10 risks in the near term.
• People-related risks intertwine the top near- and long-term risks.
• Third-party risks rose dramatically in importance when compared with last year’s report (17^th place to fourth).
• Regulatory changes and scrutiny are heightened for the near term and a decade out.

In summary, the report’s authors note, “The churn in this year’s survey results points to multiple sources of uncertainty, painting a cloudy, interconnected picture of the business landscape.”

Elaborating on the concept of churning risks, the report adds, “Near term, there is continued economic uncertainty causing executives to sharpen their focus on managing external risks (inflation, cyber threats, interest rates, third party exposures, etc.) and increasing organizational resilience. Long term, executives remain on guard for what comes next, as illustrated by the uptick in risks following the recent events in the Middle East.”

Of most immediate concern to the C-suite are risks hurdling their way in the year ahead. According to the survey, the top seven risks for 2024 are:

1. Economic conditions, including inflationary pressures.
2. Ability to attract, develop and retain top talent, manage shifts in labor expectations, and address succession challenges.
3. Cyber threats.
4. Third-party risks.
5. Heightened regulatory changes and scrutiny.
6. Adoption of digital technologies requiring new skills that are in short supply.
7. Existing operations and legacy IT infrastructure that are unable to meet performance expectations, as well as “born digital” competitors.

This is the fourth Top Risks report that also prompts survey respondents for an assessment of risks their organizations could face 10 years out. The top five:

1. Cyber threats.
2. Ability to attract, develop and retain top talent, manage shifts in labor expectations, and address succession challenges.
3. Adoption of digital technologies requiring new skills that are in short supply.
4. Rapid speed of disruptive innovations enabled by new and emerging technologies and/or other market forces.
5. Heightened regulatory changes and scrutiny.

Perhaps the most surprising revelation in this year’s report is that macroeconomics moved even higher on the C-suite’s risk radar. Coming in at a solid second in last year’s report, I assumed macroeconomic risks might recede. However, it moved into first place for the year ahead and remains solidly in the top 10 for the remainder of the decade.

“Near term, uncertainty continues in the market over central bank policies amid persistent inflation being fueled by rising labor costs (driven by robust employment and skilled labor shortages, particularly in countries where birth rates have dropped significantly), outsized government stimulus, the West’s de-risking reliance upon China, regional conflicts, other development in the political landscape, and increasing shelter, food and energy prices,” according to the report.

At more than 160 pages, the Top Risks report is far too comprehensive for me to cover in just this blog. There is insightful analysis in calls to actions on topics such as:

• Navigating an uncertain economic environment in 2024.
• Cyber issues that executives should be thinking about in 2024.
• Forging ahead with artificial-intelligence capabilities in 2024.
• Embracing new talent strategies in 2024 and beyond.
• Understanding and managing the geopolitical risk landscape.

In addition, the report includes valuable insights such as:

• A three-year comparison of risks.
• Analysis of views by executive positions.
• Evaluating an organization’s approach to risk oversight.
• Analysis of risk by different size organizations.

The report also contains useful analysis by industry, geographic region and more. The only way to truly appreciate this report is to make it a priority to read it thoroughly.

Congratulations to my friends and colleagues at NC State and Protiviti on another outstanding and timely report on the top risks that lie ahead. I welcome your thoughts on the top risks your organization is facing in 2024. Share your comments on LinkedIn or X (formerly known as Twitter) or drop an email to me at blogs@richardchambers.com.