Dive Brief:
- Cyber threats are the top near-term risk for business leaders, according to Protiviti’s Unleashing Enterprise Value report published Thursday. The study surveyed 1,330 board members and C-suite executives globally.
- More than three-quarters of executives said they lack strong confidence in their ability to modernize their organization, protect enterprise value and respond quickly to emerging risks at the same time, underscoring a gap in enterprise readiness.
- Worries over looming cyber threats are showing up in budget planning as cybersecurity remains the leading strategic investment priority, with 45% of executives identifying it as a key area for investment.
Dive Insight:
As companies race to adopt emerging technologies, the ability to modernize safely matters as much as the speed of modernization itself.
Protiviti’s report found security and resilience are now prerequisites for business growth, with half of the top 10 near-term risks related to protecting enterprise value. New risks from implementing AI ranked second after cyber threats.
Technological advancements are making cybersecurity a moving target, with CIOs under increased pressure to keep pace with a shifting threat landscape. In response, IT leaders must work closely with CISOs and security teams to identify vulnerabilities and adapt operations accordingly.
“Transformation alone will not be enough in 2027,” said Matthew Moore, managing director and global leader of legal, risk and compliance at Protiviti, in the report. “The advantage will go to organizations that can turn uncertainty into opportunity, using risk insights to adapt faster, act decisively, and accelerate growth.”
Security also needs to become a businesswide consideration, the report said, challenging leaders to identify threats, make rapid decisions and coordinate responses across business functions.
“Resilience should be treated as an integrated business capability, not as separate risk, transformation and strategy initiatives,” said Mark Beasley, professor of enterprise risk management and director of NC State’s ERM Initiative, in the report. “Breaking down silos can help leaders recognize change earlier, accelerate strategic decisions and turn uncertainty into competitive opportunity.”
The survey also highlighted the importance of managing risks beyond the corporate perimeter.
Third-party risks ranked eighth among the top 10 near-term concerns, while privacy and compliance with identity-protection regulations ranked seventh.
Those risks are growing as leaders expand partner relationships: 65% of executives see significant opportunity in building out strategic alliances, up from 62% last year, making ecosystem development a significant go-to-market avenue. Partnerships can provide organizations faster access to emerging technologies and capabilities.
“No organization can solve the AI or cyber risk challenges alone,” said Kim Bozzella, global CIO and CISO solutions leader at Protiviti, in the report. For CIOs and security leaders, that raises the stakes on scrutinizing the vulnerabilities that come with suppliers, technology partners and the handling of sensitive data.
