BUSINESS RISKS TALENT MANAGEMENT
Singapore - Recruiting and managing talent poses a significant risk for businesses across all sectors this year as the global economy recovers from the recession.
Findings from the third annual Ernst & Young (E&Y) Global Business Risk report 2010 have shown that organisations across all sectors face a series of risks and challenges this year. Recruiting and managing talent climbed to fourth spot on the top 10 business risks chart, a significant leap from seventh place last year. Mildred Tan, head of advisory for E&Y Asean Sub-Area, says the jump is unsurprising as talent management has always been "an important consideration" for companies, with or without the financial crisis.
While last year had seen employers implementing cost-cutting and restructuring measures that led to employees taking on new responsibilities for which they have "little training or direct experience", Tan says things are improving. "Now with some sense of normality returning, there could be greater impetus for companies to refocus on how to retain and compete for available talent," says Tan.
Developing programmes to build up the skill sets they lack in order to steer the business back on the path of growth would also be a key area of focus for companies, adds Tan.
Over 70 leading executives and analysts across 14 industrial sectors also ranked "dealing with emerging markets" and "social acceptance risk and corporate social responsibility (CSR)", new to the list, among their business concerns in the next 12 months. The report says CSR is seen as a particular threat to the reputation of the asset management and banking industries.
Regulation and compliance remains the topmost prominent risk for all industries in 2010 with the general uncertainty surrounding regulation and that is affecting most business decision-making processes. Tan says, "The ability to anticipate threats, respond and continually adapt is as critical a part of the management process as it ever has been."
The top 10 risks for 2010 (ranking from 2009 in brackets) are:
1. Regulation and compliance (2)
2. Access to credit (1)
3. Slow recovery or double-dip recession (No change)
4. Managing talent (7)
5. Emerging markets (12)
6. Cost cutting (No change)
7. Non-traditional entrants (5)
8. Radical greening (4)
9. Social acceptance risk and corporate social responsibility (New)
10. Executing alliances and transactions (8)
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