News In Focus
Compliance risk tops table of concerns
Regulatory and compliance concerns top the list of threats across all sectors, as the global economy exits recession, according to the third annual Ernst & Young Global Business Risk report.
In a series of interviews, around 70 leading industry executives and analysts across 14 sectors were asked to identify and rank the top business risks for the next 12 months, as well as risks currently below the radar that could rise into the top ten in the years ahead.
The prominence of regulation and compliance risk is ascribed to general uncertainty surrounding regulation, which interviewees believe is stalling business decision-making. However, access to credit and the threat of continuing weak economic performance in parts of the word remained high on the list of potential concerns.
Recruiting and managing talent rose sharply in the risk table this year, as did dealing with emerging markets.
Gerard Gallagher, advisory partner and head of private sectors at Ernst & Young said, “Although there is some sense of normality with firms now refocusing on how to compete with available talent and looking at the risks as well as the opportunities of investing in emerging markets, access to credit is still the second highest risk that business face and the risk of a double dip recession the third. Now is not the time for companies to take their eye off the ball.”