1‘Rapid Speed’ of Disruptive Innovation Leads Top 10 Risks for 2018
When asked what concerns them most heading into 2018, corporate board members and executives cite the rapid speed of disruptive innovation, according to a recent survey from Protiviti and North Carolina State University. The accompanying report, titled “Executive Perspectives on Top Risks for 2018,” presents a “top 10” list of risks heading into next year, and tech-related developments dominate the ranking. Cyber-attacks, for example, continue to threaten core operations and brand reputations. At the same time, companies struggle to leverage big data to boost workplace productivity and efficiency, and worry about competition from new “born digital” companies with a low cost-base for operations. A total of 728 global corporate board members and executives took part in the research.
2Disruption Ranks as Top Risk
The rapid speed of disruptive innovation enabled by new and emerging technology ranked No. 1 among top risks, as cited by 67 percent of survey respondents. Board members and executives feel that disruption and other market forces may outpace their organization’s ability to compete and/or manage risk appropriately.
3Resistance to Change Hurts Agility
There was a three-way tie for the No. 2 risk, as 61 percent of survey respondents selected “resistance to change,” which they said may “restrict our organization from making necessary adjustments to the business model and core operations.” With more industry disruptors than ever, “strategic error in the digital economy can be lethal,” according to the report.
4Cyber-Threats Loom Large as a Concern
5Corporate Culture Stymies Risk Identification
6Organizations Are Struggling to Ensure Privacy
Three of five survey respondents cited the need to ensure privacy/identity management as a top risk, as information security/system protection may require significant resources to do so. While cloud computing, social media, mobile tech and other advancements are enhancing the customer experience, they also bring new challenges in securing them.
7Regulatory Changes Could Impact Product Delivery
8Competition for Talent Tightens Up
The lack of available and qualified employees remains a key concern, as 59 percent of survey respondents said difficulties in attracting and retaining top talent may limit their ability to achieve operational targets. Executive leaders must closely examine their existing culture to address this, in seeking to appeal to younger job candidates who expect the latest tech tools and the opportunity to create and innovate.
9Big Data Not Always Translating to Productivity Gains
10Uncertain Economy Could Restrict Growth
11Upstart Competitors Threaten to Do More With Less
Lastly, 58 percent of survey respondents admitted that their existing operations may not be able to meet performance expectations for quality, time-to-market, cost and innovation. They’re particularly concerned here about keeping up with new competitors that are “born digital” with a low cost-base for operations.