Middle Eastern organisations rate succession challenges and the ability to attract and retain top talent amid a tightening labour market as the biggest risks they face in 2023, according to a new survey from Protiviti and NC State University. The report also reveals that senior decision-makers in the region remain concerned about broader macro risks, such as the softening economy and the state of global supply chains.
The 11th annual survey, titled Executive Perspectives on Top Risks for 2023 and 2032, was conducted by global consulting firm, Protiviti, and NC State University Poole College of Management’s Enterprise Risk Management (ERM) Initiative. The study surveyed 1,304 board members and C-suite executives from organisations around the globe in various industries, asking them during September and October 2022 to rate 38 macroeconomic, strategic and operational risks for 2023 and a decade ahead (2032).
The top risks for 2023
Globally, three of the top four risks highlighted by survey respondents for 2023 are related to talent, continuing a trend reported in last year’s survey. Of the 38 risks included in the survey, the top five risks identified by global business leaders for the coming year are:
- Organisational succession challenges and ability to attract and retain top talent
- Economic conditions (including inflationary pressures)
- Increased labour costs
- Resistance to change in company culture
- Uncertainty surrounding organisational core supply chains
Looking ahead to 2032, talent attraction and succession planning remain a primary concern, especially the need for tomorrow’s talent to become fluent in a series of fast-moving emerging technologies such as quantum computing, advanced AI and the metaverse.
The top tisks through 2032
Survey respondents also rated the expected impact of the 38 risks in 2032, assessing how the risk landscape might shift over the coming decade. The top five risks identified for 2032 are:
- Organisational succession challenges and ability to attract and retain top talent
- Adoption of digital technologies requiring reskilling and upskilling employees
- Speed of disruptive innovations enabled by advanced technologies
- Resistance to change in company culture
- Ensuring data privacy and compliance with growing identity protection expectations and regulations
“In the current tight labour market, talent retention has naturally become a top risk that executives are worried about. However, with the added complication of a softening economy, they need to tread carefully,” said Pat Scott, EVP, Global Industry and Client Programs, Protiviti. It’s important that executives weigh today’s economic pressures against the possible costs a decade from now and make prudent organisational choices that increase their company’s resilience next year while laying the foundation for success in the years to come.”
Thinking a decade ahead to 2032, survey respondents still had talent retention and succession planning top of mind, but this concern reflects longer-term uncertainty over rapidly advancing emerging digital technologies and the privacy and security risks they may bring.