#USA #Cybersecurity #Menlo Park #Protiviti #ERM Initiative

Global Executives Show Real Optimism Despite Challenges

In a world where businesses are constantly facing economic uncertainty, geopolitical tensions, and rapid technological upheaval, a recent survey conducted by Protiviti and NC State University's ERM Initiative has unveiled a noteworthy trend among global executives. Nearly 70% of these leaders express confidence in the potential for revenue growth over the next two to three years. This survey, which sampled over 1,500 C-suite executives and board members globally, highlights a decisive shift in the mindset surrounding risk and opportunity.

Embracing Risk for Growth

The prevailing attitude among these executives is not about avoiding risk but rather leveraging it for growth. A significant 62% of respondents indicated plans to enhance their ecosystem of strategic partnerships, aiming to improve market reach and operational capacities. This marks a significant evolution in how organizations perceive and integrate risk into their strategic planning.

As businesses navigate the uncertainty that accompanies today's global landscape, the top immediate risks identified in the survey include cybersecurity threats, third-party risks, and challenges associated with adopting emerging technologies. Notably, concerns regarding legacy IT systems and operational performance gaps have escalated, urging executives to reassess their technological infrastructures.

Matt Moore, Protiviti's Global Leader of Risk & Compliance, emphasized that simply maintaining the status quo poses significant risks in itself. In his words, "The greatest risk today is standing still." He encourages leaders to modernize their technological infrastructure and prioritize cybersecurity to build resilience.

Cybersecurity at the Forefront

Cybersecurity has emerged as a core focus for many executives, marking it as the leading investment priority. This reflects a broader understanding of the link between trust and security in business. In the survey, investment priorities for the next few years spotlight how organizations are approaching both growth and the management of risks:
1. Cybersecurity
2. Business process refinement
3. Infrastructure modernization
4. Data privacy
5. Customer experience enhancement

These priorities underscore a proactive approach to developing robust business models capable of withstanding potential disruptions.

The AI Paradigm Shift

Artificial Intelligence (AI) continues to redefine not just business models but also the risk profiles associated with them. The survey resurfaced concerns over data integrity linked to AI systems, as approximately 31% of leaders cited cybersecurity vulnerabilities associated with AI implementation. Moreover, nearly one-third are working actively to integrate AI more deeply into their operations, recognizing it as both a risk and an opportunity. Upskilling the workforce has risen to become one of the top concerns, further highlighting the human element in technological advancements.

Fran Maxwell, the Global CHRO Solutions and People Change Leader at Protiviti, stated, "Human capability is the ultimate differentiator. Upskilling and reskilling will determine who captures AI's full ROI." This notion emphasizes the need for businesses to invest in their human capital as fiercely as they invest in technology.

Long-Term Strategic Outlook

Looking ahead, organizations are increasingly prioritizing strategies that enhance customer focus, competitive edge, and the secure deployment of AI technologies. The recognition that managing uncertainties can fuel innovation has become central to sustainable growth. Dr. Mark Beasley, a Professor and Director of the ERM Initiative at NC State, articulated that transforming disruption into opportunity is now essential for leaders aiming to thrive.

In summary, the results from Protiviti's survey illuminate a landscape where business leaders are not just navigating risks but actively seeking ways to exploit them. They are investing purposefully in cybersecurity, AI, and infrastructure modernization to prepare for what's to come. With the stakes high and the landscape fraught with risks, waiting becomes a less favorable strategy. Indeed, the focus has shifted to creating resilient, growth-oriented organizations capable of turning current challenges into fruitful opportunities.