Businesses worldwide are preparing for a heightened risk environment. Not only are financial assets at stake due to excessive debt and fiscal uncertainty, but organizations are also concerned about the risk of inadequate talent, increased regulations, data security and global competition.
With many of these concerns in mind, PricewaterhouseCoopers released a new report ("Risk in review: Rethinking risk management for new market realities"). According to the study, the ability to access the right talent represent a considerable risk for more than half of companies surveyed this year, compared to only 25 percent of respondents who answered similarly in 2011.
While such findings tend to suggest the need for companies to invest in employee development programs, they also allude to a widening leadership gap. With many executives retiring and the demand for skills rising, today's workforce demands solid leaders to guide it in both personal and professional development.
"There is an increasing pressure on leaders from boards and senior management to adopt stronger measures to prepare for the evolving risk landscape," said Dean Simone, leader of risk assurance at PwC. "In this new risk era, corporate boards and senior management have a crucial role to play to ensure they set the right culture and align their strategy to risk imperatives."