Four Power Moves to Turn Economic Downturns into Innovation Uptrends During an economic downturn, it’s hard to think outside the bucks – let alone the box. We often jump to cost-cutting in an effort to preserve profits and cash flow. The logic is simple: we need to stay afloat. As a result, we focus internally, […]
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While I like to start the year on a positive note, I feel compelled to share with you an article on a serious topic: What do you foresee for your company in 2023 in terms of your company’s biggest business risks?
One business leader I follow is Jim DeLoach, managing director of Protiviti, member of Forbes’ CFO network and regular contributor to Forbes magazine. DeLoach describes himself as a person with “an abundance of curiosity about how accomplished people lead and succeed” who loves “working with talented people who are focused on solving complex problems with innovative solutions.” I think that makes him a perfect person for Innovators Alliance to tune into.
Are you having trouble finding and keeping talent, coping with disruptions, and adapting to changes in workplace culture? If so, you’re not alone, according to DeLoach.
In an article for NACD BoardTalk, he outlined the 10 highest-ranked global risk themes for businesses based on a recent global survey of 1,034 C-level executives and directors. The global survey participants view 2023 as “the riskiest year in more than a decade.”
The top 4 critical uncertainties companies face over the next year are:
- Succession challenges and the ability to attract and retain top talent … may limit the ability to achieve operational targets.
- Economic conditions in the company’s market may significantly restrict growth opportunities.
- Anticipated increases in labor costs may affect the ability to meet profitability targets.
- Resistance to change may restrict … making adjustments to the business model and core operations.
Read the full article about the 10 highest-ranked global risk themes.
As I see it, there are 3 clusters of concern in the top 10 risks:
- People: succession challenges (finding and keeping top talent) are closely related to how people are involved in the organization. Is the business attending to the need to upskill and reskill employees? Is the workplace culture attuned to cultural changes affecting workplaces?
- Economics: market conditions, labour costs, supply chain uncertainty and timely identification of market opportunities.
- Organizational flexibility: to adapt to changes in employee expectations about workplace culture, to adopt digital technologies, and to manage an unexpected crisis that significantly impacts operations or reputation.
DeLoach comments that while cybersecurity and data privacy are still significant priorities, they didn’t make it into the top 10 which indicates the seriousness of the other top concerns.
“As leaders look forward to the next 12 months, …” DeLoach remarks, “Boards should consider these risk themes and takeaways in evaluating their risk oversight focus for the coming year… If senior leadership has not identified or prioritized these issues as matters to consider in managing the business going forward, directors should consider their relevance to the company’s strategy and business model and ask why not.”
Read the full article here.
“Prepare for the worst but hope for the best.”
Benjamin Disraeli
If you understand the value of learning with and from other like-minded entrepreneurs, consider attending an Innovators Alliance event. Innovators Alliance is Canada’s most valued ‘idea ecosystem’ for entrepreneurs, developed by entrepreneurs.
Join us in-person or virtually in 2023 to explore a fit for you and your business. You’ll meet other business innovators, share knowledge about handling business challenges, and discuss solutions in an atmosphere of confidentiality, respect and mutual support.
The post Are You Prepared for “the Riskiest Year” in Business? appeared first on Innovators Alliance.
