According to a PwC survey of C-Level executives in the US, the respondents cite a long list of business issues as serious risks to their companies. Of these, cyberattacks top the list, with 40% citing more frequent and/or broader cyber risks as a serious risk to businesses. Following cyber risks were talent acquisition and retention (38%) and rising production costs (34%).
Geopolitical factors like US-China relations (27%), a prolonged conflict in Ukraine (22%), and US societal unrest (17%) were among the less-frequently-cited risks. Although 60% of US executives expect a recession in the next year, only 30% considered it a serious risk.
How can the CXOs handle cyber risks to businesses?
Cybersecurity is very important for businesses. 40% of executives cite cyberattacks as the topmost serious risk companies are facing. This is because there are more threats to data and businesses are using data more. Cybersecurity is becoming an enterprise-wide issue, going beyond the CISO’s office. According to the survey, all roles ranked cyberattacks high on their list of risks, including tax leaders (47% cited it as a serious risk), CFOs (44%), and CMOs (41%). 51% of board members cited it as a serious risk and another 35% called it a moderate risk, which is an even bigger signal of the growing concern around cyber. Cybersecurity has now found itself on the agenda of the entire C-suite.
The importance of cyber indicates two things. First, almost all companies are on the path to digitization, with a heavy reliance on data and analytics, mobile and cloud. Second, cyber threats continue to increase and become more sophisticated.
What can CXOs do to address the cyber risks?
- Cybersecurity is a big business concern, not just an IT issue. You need to include cybersecurity and data privacy in your business plans, and you should also increase your investment in security measures.
- Educate your employees about cybersecurity and make sure they follow effective cybersecurity practices.
- Make sure you have a cyber plan for each new business initiative or transformation.
- You should use data and intelligence to measure your cyber risks regularly. Look for blind spots in your third-party relationships and supply chains proactively.
According to the survey, 84% of the executives are taking action or closely monitoring policy areas related to cybersecurity, privacy, and data protection. 79% are revising or enhancing their cyber risk management whereas 49% are increasing investments in cyber security and privacy.
How can CXOs address concerns of talent retention and acquisition?
Despite 38% of executives expressing concerns about their ability to hire and retain the right talent, some companies have begun to streamline their workforce. As businesses get more and more automated, it’s very important to find employees with the right skills. You need employees who know how to do the job well and also know how to use technology. If you don’t have the right people, the automation might not work right and there could be more problems, leading to business risks.
Here is what CXOs can do.
- You need to analyze your strategic workforce needs. This way you will know the skills and capabilities that are required today as well as those that will be needed to execute your company’s future strategic initiatives. You should then customize your HR strategy based on the employee type you need to grow.
- For recruitment, performance management, and other components of your people experience, you need to consider what changes need to be made to drive the right culture, experience, and outcomes.
- You can use performance management tools that utilize data to assess how employees and managers are doing. This is especially important as there is an increasing shift to hybrid work where in-person oversight is less common.
- Make sure to do culture assessments regularly in order to create an inclusive environment, even if the talent profile of your company changes. In particular, make sure that you don’t have a “two-tiered” organization in which in-person and remote workers are treated differently. Balance the amount of automation you use with your talent needs and company culture.
Growing despite business risks
Despite these risks, business leaders see bright spots as 83% say they are focusing their business strategy on growth. Many executives are exploring ways to grow their businesses. Some are looking into acquisitions, and others are thinking about increasing their internal investments. 70% of executives say they’re considering an acquisition due to the current business environment. Internally, 53% are investing in digital transformation, 52% in IT, 49% in cybersecurity and privacy, and 48% in customer experience.
Many of these investment areas can help improve efficiency and scalability and introduce new technology to boost productivity. This is important as companies continue to deal with risks like talent shortages.
Image and source credits: PwC Pulse Survey
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