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Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
Executive perspectives on top risks for 2013
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Executive perspectives on top risks for 2013

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Key Issues Being Discussed in the Boardroom and C-Suite …

Key Issues Being Discussed in the Boardroom and C-Suite

A Protiviti and North Carolina State University webinar presentation on top risks in 2013

Published in: Business
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  • 1. Executive Perspectives on Top Risks for 2013 Key Issues Being Discussed in the Boardroom and C-Suite Presentation from live webinar March 13th, 2013
  • 2. Today’s Presenters Mark S. Beasley is the Deloitte Professor of Enterprise Risk Management and Director of North Carolina State’s Enterprise Risk Management (ERM) Initiative, which provides thought leadership about ERM practices and their integration with strategy and corporate governance. Mark recently completed over seven years of service on the board for the Committee of Sponsoring Organizations of the Treadway Commission (widely known at COSO). He is a frequent speaker at national and international conferences on ERM, internal controls, and corporate governance, including audit committee practices and frequently works with boards of directors and senior executives on risk oversight issues. He received a BS in accounting from Auburn University and a Ph.D. from Michigan State University. Visit www.erm.ncsu.edu.2 © 2013
  • 3. Today’s Presenters Carol Beaumier Executive Vice President and member of Protiviti’s executive management team. She also leads the firm’s global Financial Services practice and is a member of the Risk and Compliance practice. Prior to joining Protiviti, Carol was a Partner with Arthur Andersen where she led the Global Regulatory Practice; a founding member of The Secura Group and leader of the firm’s Risk Management practice; and a regulator with the Office of the Comptroller of the Currency, a bureau of the U.S. Treasury Department. An experienced consultant with more than thirty years of experience, Carol has extensive experience with numerous regulatory issues that affect multiple industries. Carol is a frequent author and speaker on regulatory and other risk issues and has made presentations in the United States, United Kingdom, Mexico, Brazil, Hong Kong, and Australia. Jim DeLoach has more than 35 years of experience and is a member of the Protiviti Solutions Leadership Team. His market focus is on helping organizations succeed in responding to government mandates, shareholder demands and a changing business environment in a cost- effective and sustainable manner while reducing risk to an acceptable level. To this end, he assists companies with integrating risk management with strategy setting, business planning and performance management. Jim serves as a member of Protiviti’s Executive Council to the CEO. He was one of 25 recipients of the “Consultant of the Year” award from Consulting Magazine in 2011. In 2012, he was named to the National Association of Corporate Directors’ Directorship 100 list, recognizing him as one of the 100 most influential people in the boardroom community. He has served on the COSO Advisory Council on several COSO projects, including the forthcoming COSO Internal Control – Integrated Framework Update. He has worked with, and delivered numerous presentations to, hundreds of companies and groups in 30 countries. He writes many Protiviti publications and publishes monthly with NACD Directorship and Corporate Compliance Insights.3 © 2013
  • 4. Introduction • Protiviti and North Carolina State University’s ERM Initiative surveyed more than 200 board members and C-suite executives on risks likely to affect their organizations over the next 12 months • The survey provides perspectives on the potential impact of 20 specific risks across three dimensions: – Macroeconomic Risks: Likely to affect organization’s growth opportunities – Strategic Risks: Likely to affect the validity of the organization’s strategy for the pursuit of growth opportunities – Operational Risks: Likely to affect key operations of the organization in executing its strategy4 © 2013
  • 5. Survey Methodology • Respondents were asked to rate 20 individual risk issues using a 10-point scale: − A score of 10 reflects Extensive Impact to their organizations over the next year − A score of 1 reflects No Impact at All • Based on average scores, the risks were categorized into one of three classifications: – Significant Impact: Risks with an average score of 6.0 or higher – Potential Impact: Risks with an average score of 4.5 through 5.9 – Less Significant Impact: Risks with an average score of 4.4 or lower5 © 2013
  • 6. Survey Respondent Breakdown Organization Size Revenues $10 billion or greater 15% Revenues $1 billion to $9.99 billion 34% Revenues $100 million to $999.99 million 36% Revenues less than $100 million 12% Executive Position (Top 5 Respondent Groups) Board Member 9% Chief Financial Officer 14% Chief Risk Officer 20% Chief Audit Executive 26% Other C-Suite 21% Industry (Top 5 Respondent Groups) Financial Services 28% Consumer Products and Services 19% Industrial Products 13% Healthcare and Life Sciences 12% Technology, Media and Communications 11%6 © 2013
  • 7. Top 10 Risks
  • 8. Top 10 Risks Regulatory risk S Economic conditions M Sovereignty risk/political gridlock M Organic growth concerns S Succession/talent O Financial markets/currencies M Cyber threats O M Macroeconomic Risk Issue Security/privacy O O Operational Risk Issue Resiliency O S Strategic Performance gap risks O Risk Issue 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.58 © 2013
  • 9. #1 – Regulatory risk Regulatory changes and heightened regulatory scrutiny may affect the manner in which our products or services will be produced or delivered.9 © 2013
  • 10. #2 and #3 – Economic Conditions and Sovereignty risk/political gridlock Economic conditions in markets we currently serve will significantly restrict growth opportunities for our organization. Uncertainty surrounding political leadership in national and international markets will limit growth opportunities.10 © 2013
  • 11. #4 and #5 – Organic growth concerns and Succession/Talent Organic growth through customer acquisition and/or enhancement presents a significant challenge. Succession challenges and the ability to attract and retain top talent may limit our ability to achieve operational targets.11 © 2013
  • 12. #6 – Financial markets/currencies Anticipated volatility in global financial markets and currencies will create challenging issues for our organization to address.12 © 2013
  • 13. #7 – Cyber threats Cyber threats have the potential to significantly disrupt core operations for our organization.13 © 2013
  • 14. #8 – Security/Privacy Ensuring privacy/identity management and information security/system protection will require significant resources for us.14 © 2013
  • 15. #9 and #10 – Resiliency and Performance gaps risk Resistance to change will restrict our organization from making necessary adjustments to the business model and core operations. Our existing operations may not be able to meet performance expectations related to quality, time to market, cost and innovation as well as our competitors.15 © 2013
  • 16. Industry Analysis
  • 17. Analysis Across Industry – Top 5 Risks* Technology, Consumer Healthcare Energy and Financial Industrial Media and Risk Issues Overall Products and Life Utilities Services Products Communi- and Services Sciences cations Regulatory risk Economic conditions Sovereignty risk/political gridlock Organic growth concerns Succession/talent Financial markets/currencies Cyber threats Security/privacy Resiliency Performance gap risk Technological Innovation risk * Includes ties as well as differences among Significant Impact – Rating of 6.0 or higher Potential Impact – Rating of 4.5 – 5.9 industry groups17 © 2013
  • 18. Analysis Across Respondent Role
  • 19. Analysis Across Respondent Role – Top 5 Risks* Chief Board Chief Risk Chief Audit Other C- Risk Issues Overall Financial Member Officer Executive Suite Officer Regulatory risk Economic conditions Sovereignty risk/political gridlock Organic growth concerns Succession/talent Financial markets/currencies Cyber threats Security/privacy * Includes ties as well as differences among Significant Impact – Rating of 6.0 or higher Potential Impact – Rating of 4.5 – 5.9 respondent roles19 © 2013
  • 20. Analysis Across Organization Size
  • 21. Analysis Across Organization Size – Top 5 Risks* Organizations Organizations Organizations Organizations Risk Issues Overall $10B or Between $1B $100M and Less than Greater and $9.99B $999.99M $100M Regulatory risk Economic conditions Sovereignty risk/political gridlock Organic growth concerns Succession/talent Financial markets/currencies Cyber threats Security/privacy Trade restrictions/ government sanctions * Includes ties as well as differences among Significant Impact – Rating of 6.0 or higher Potential Impact – Rating of 4.5 – 5.9 organization sizes21 © 2013
  • 22. Q&A
  • 23. Thank you!For more information and to download the full report Executive Perspectives on Top Risks in 2013 visit: www.protiviti.com/toprisks and www.erm.ncsu.edu

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