Kempkey Insurance and Risk Management Services

Top Risks for 2016

Apr 16, 2016

Protiviti and North Carolina State recently teamed up to produce a report on top risks currently on the minds of executives. The report contains results from their fourth annual survey to obtain views on the extent to which a broad collection of risks are likely to affect organizations over the next year.

Of the 27 risk issues that were rated, here are the top three in each of the three categories considered: Macroeconomic, Strategic, and Operational.

Macroeconomic Risk Issues

  • Anticipated volatility in global financial markets and currencies may create significantly challenging issues for our organization to address
  • Uncertainty surrounding political leadership in national and international markets may limit our growth opportunities
  • Anticipated changes in global trade policies may limit our ability to operate effectively and efficiently in international markets

Strategic Risk Issues

  • Rapid speed of disruptive innovations and/or new technologies within the industry may outpace our organization’s ability to compete and/or manage the risk appropriately without making significant changes to our business model
  • Social media, mobile applications and other internet-based applications may significantly impact our brand, customer relationships, regulatory compliance processes and/or how we do business
  • Regulatory changes and scrutiny may heighten, noticeably affecting the manner in which our products or services will be produced or delivered

Operational Risk Issues

  • Uncertainty surrounding the viability of key suppliers or scarcity of supply may make it difficult to deliver our products or services
  • Risks arising from our reliance on outsourcing and strategic sourcing arrangements, IT vendor contracts, and other partnerships/joint ventures to achieve operational goals may prevent us from meeting organizational targets or impact our brand and image
  • Our organization’s succession challenges and ability to attract and retain top talent may limit our ability to achieve operational targets

Question: Do any of these risks apply to your organization? If so, do you have a process to assess and respond to them? You can learn more by downloading Executives Perspectives on Top Risks for 2016.

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