As we approach 2024, companies must stay ahead of emerging risks and prioritize their efforts accordingly. The Middle East is going through rapid development with large projects and technology advancements attracting investment and innovation. The risk landscape is dynamic and fast-moving, with interconnected threats that require proactive involvement.
The top business risks in 2024 are predicted based on research, surveys, and studies by credible published global sources with an understanding of the minutiae of regional business scenarios. Cybersecurity and data security-84%, Human capital-57%, Macroeconomic and geopolitical uncertainty-43%, and Digital disruption with new technologies-33% emerge as the top risks.
As organizations grapple with an increasingly weaponized cyber-attack landscape, cybersecurity is the biggest persistent threat, the number one risk for the sixth year, with risk rating increasing by 11% over the previous year. It is no surprise given many high-profile cyber incidents, including the ransomware attacks and an increase in so-called “wiper attacks.” An organization’s resilience and cybersecurity are important when dealing with external, imminent, and hard-to-predict threats.
Organizations continue to face a human resources crisis; human capital, diversity, and talent management are the second biggest risks as businesses struggle to fill vacant positions and retain talent. The ability to attract, develop, and retain top talents and address succession challenges is a critical risk.
To navigate an uncertain economic environment is the next biggest risk. The multilayered impacts of a global pandemic, war in Europe, geopolitical developments, the high inflation rate, and aggressive monetary policies bring continued economic uncertainty in managing external risks. It means being nimble and having the resources to respond to the unexpected.
New and emerging technologies and other market forces enable the rapid speed of disruptive innovations. Digital disruption refers to the transformative impact of technology on the traditional design of the organization’s business model. It addresses questions about the speed of “digital programs” and their operational success. As high-speed technological developments like Artificial Intelligence pose a new and emerging threat, digital disruption and new technology will be a top risk. Adoption of digital technologies requires new skills that are in short supply.
A common reflection of thought leaders is how important it is for management to protect organizations against risk and maximize the chances of future success. It is imperative to navigate the Polycrisis – a cluster of related global risks with compounding effects where the overall impact exceeds the sum of each part, to survive and sustain business continuity.
The Cybersecurity investment strategies focus on automating control processes and professionalizing cybersecurity culture. The effective and efficient setup, alignment, and execution of programs ensure that businesses can withstand and recover from actual incidents, maintain operational continuity, and minimize damage. Assessing how cybersecurity risks are dealt with, reviewing and testing measures and response plans to protect the assets, and benchmarking the internal setup against best practices are essential. Evaluate cybersecurity awareness and training and assess effectiveness.
Build greater organizational resilience. Strengthen organizational governance to identify risks and monitor them before problems arise. Test risk and mitigation strategies using scenario run-through exercises to identify inter-related risks that could remain hidden. Understand the risk universe to tackle emerging risks and grasp new opportunities.
Effective people and talent management is pivotal in building trust and a base for nurturing a loyal workforce. Assess whether the organization’s values and objectives align and are communicated within and outside the business to engage with potential and existing talent.
Future risk expectations are digital disruption and climate change among the top risks. The cyber-attacks, economic downturns, environmental events, or the emergence of a disruptive new competitor are others. Transforming business operations by designing more efficient value chains depends on how new technologies are embraced and whether they deliver the promised value-add.
Forward-thinking executives should embrace ambiguity and complexity as an opportunity. Rarely anyone knows what is next; hence, the need is insight and foresight, mainly from audit and risk professionals who, with their robust business acumen, could look beyond known risks to emerging and potential risks. The future is uncertain, and building resilience to emerging threats will be a key business trend in 2024.
