As I have noted in recent months, the first half of the 2020s was one of the most disruptive periods in decades. For more than five years, the world has been in a perpetual state of crisis. Whether COVID, geopolitical conflicts, macroeconomic events, or more recently the potential for global trade wars, 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.

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 13^th annual “Executive Perspectives on Top Near- and Long-Term Risks,” is a joint undertaking by North Carolina State University’s ERM Initiative and Protiviti. More than 1,200 board members and C-suite executives around the world were surveyed about their views on 32 macroeconomic, strategic and operational risks facing their companies over the near-term (two to three years ahead) and the long-term (a decade later). As Protiviti observes: In today’s interconnected risk landscape, business leaders face complex uncertainties but feel better prepared to operate in a volatile environment and keep pace with change.

Survey results did not vary drastically from prior years, but audit and risk professionals can use the results to help them as they queue up risk assessments and identify emerging risks to monitor and mitigate. The survey revealed the following top 10 risks over the next 2-3 years as viewed through the C-suite lens:

1. Economic conditions, including inflationary pressures – Fluctuations in economic conditions, such as rising inflation, interest rates, and supply chain disruptions, can impact operational costs, pricing strategies, and consumer demand.
2. Cyber threats – Increasing cyber risks, including data breaches, ransomware, and phishing attacks, threaten business continuity, data security, and regulatory compliance, requiring strong cybersecurity measures.
3. Ability to attract, develop and retain top talent, manage shifts in labor expectations, and address succession challenges – Competition for skilled employees, changing workforce expectations (e.g., remote work, DEI initiatives), and leadership succession planning can impact organizational stability and long-term success.
4. Talent and labor availability – Labor shortages in key industries and roles can hinder productivity, increase costs, and delay project execution, especially in sectors reliant on specialized skills.
5. Increases in labor costs – Rising wages, benefits, and compliance costs due to labor market trends, union negotiations, or new labor laws can reduce profitability and require operational adjustments.
6. Heightened regulatory change, uncertainty, and scrutiny – Rapid changes in regulations, increased enforcement, and uncertainty in compliance requirements (e.g., environmental, financial, data privacy) can lead to legal risks, fines, and operational challenges.
7. Third-party risks – Dependence on external vendors, suppliers, and service providers increases exposure to risks like financial instability, cybersecurity vulnerabilities, and supply chain disruptions.
8. Rapid speed of disruptive innovations enabled by new and emerging technologies and/or other market forces – The fast pace of technological advancements and shifting market trends can make existing business models obsolete, requiring continuous adaptation and investment.
9. Adoption of AI and other emerging technologies requiring new skills in short supply – Integrating AI and advanced technologies demands expertise that may be scarce, leading to hiring challenges, training needs, and a competitive talent market.
10. Emergence of new risks from implementing artificial intelligence – AI adoption introduces risks such as biased algorithms, ethical concerns, regulatory compliance issues, and potential job displacement, requiring careful governance and oversight.

A useful feature in this year’s report permits a comparison of how the different executive groups surveyed view the significance of risks. For example, boards consider economic conditions and talent and labor availability to be more significant near-term risks than CEOs. In fact, CAEs and boards are aligned on the significance of each of the 10 risks – more so than either group is with CEO respondents.

While there were no major surprises on how risks are being viewed, the current environment remains volatile. The political climate in the U.S. and other regions of the world is infusing a new raft of risks (such as tariff wars) that were not prominent on few radar screens at the beginning of the year.

As with recent editions of this annual survey, respondents were also asked to share perspectives on risks going forward. The study asked respondents to rank their top two risks a decade out across three risk categories:

Macroeconomic risk outlook:

1. Economic conditions, including inflationary pressures
2. Talent and labor availability

Strategic risk outlook:

1. Heightened regulatory change, uncertainty and scrutiny
2. Rapid speed of disruptive innovations enabled by new and emerging technologies and/or other market forces

Operational risk outlook:

1. Cyber threats
2. Ability to attract, develop and retain top talent, manage shifts in labor

It is impossible to convey all the rich information and insights from this report in a blog post. I strongly urge readers to access and read a copy, and to share it with senior executives and members of their boards and audit committees.

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 2025.