CFOs Prioritize Talent and Culture Amidst Global Risks

As geopolitical tensions, technological advancements, and economic uncertainties continue to shape the global landscape, CFOs are focusing their attention on what they believe to be the cornerstone of organizational success: people. According to the latest Executive Perspectives on Top Risks Survey conducted by Protiviti and NC State University’s ERM Initiative, CFOs rank talent management as their top concern for 2024 and the next decade, highlighting the critical importance of attracting, developing, and retaining top talent.

Amidst the backdrop of regional conflicts, cybersecurity threats, and economic volatility, CFOs are acutely aware of the need to address talent and organizational culture as foundational elements for navigating these challenges. The study also reveals that CFOs see talent and succession challenges as not only their most pressing risk concern for the year but also as key factors in evaluating, adopting, and optimizing emerging technologies.

However, the talent landscape is fraught with challenges. The impending retirement of the baby-boomer generation, coupled with a shortage of new professionals entering the workforce, presents a significant hurdle for organizations seeking to sustain growth and innovation. CFOs recognize the need to overhaul traditional workforce-planning approaches and are working closely with HR leaders to develop data-driven talent strategies and skills inventories.

In addition to talent concerns, CFOs are also closely monitoring economic conditions and inflationary pressures, recognizing the need for operational resilience in the face of potential economic turbulence. This includes efforts to optimize costs, improve profitability, and fortify supply chain resilience through innovative risk management approaches.

Cyber threats remain a top concern for CFOs, who are working closely with CIOs and CISOs to quantify risks and fund information security investments. Data privacy risks, including those arising from cyber breaches and the adoption of advanced technologies like GenAI, are also on the rise, further emphasizing the need for organizations to prioritize cybersecurity measures.

In conclusion, as CFOs navigate the complex and evolving global landscape, they are increasingly turning to their organization’s most valuable asset—their people. By prioritizing talent and culture, CFOs are positioning their organizations to address, manage, and adapt to a wide range of risks, ensuring long-term success in an uncertain world.