Talent risk has emerged as a top challenge for C-suite executives, according to Accenture’s worldwide Risk Study.
The study highlights a surge in concerns among UK financial leaders about implementing disruptive technologies, especially AI, over the last two years.
It found that talent risk, which includes hiring, retention, burnout, and productivity, is a top concern for C-suite executives at 24 per cent globally and in the UK.
The study also found that 31 per cent of UK financial services executives were more concerned about disruptive technology than the global average of 25 per cent.
Disruptive technologies came in second to regulatory and compliance issues (33 per cent).
Furthermore, according to 35 per cent of UK executives, introducing disruptive technology increased the importance of financial risks, whilst 39 per cent of worldwide executives said operational risks including supply chain disruption and cyberattacks would have a greater impact.
Compared to the global average of 24 per cent, climate change and environmental threats were ranked lower in terms of growing concerns, with only 17 per cent of UK executives citing their significance.
Additionally, 56 per cent of UK respondents were more concerned about how climate threats could affect wider financial hazards, while 34 per cent were more concerned about growing operational risks.
Accenture managing director, head of risk strategy & consulting Heather Adams says: “Implementing artificial intelligence has shot up the agenda for businesses across all sectors in the last two years, as business growth and efficiency benefits are becoming clearer. Amid the hype, it’s little surprise to see that UK financial services firms are increasingly concerned about the risks its implementation could pose to their businesses.
“New innovative technologies inherently bring some uncertainty, and with uncertainty comes risk in the short term. But the potential is even greater, and so to mitigate these risks, UK financial services businesses must implement robust governance frameworks and ensure thorough data quality control, something they are uniquely well-placed to do due to heavy regulation and governance requirements in the sector.
“If embraced in a safe and responsible way, AI and other disruptive technology will help mitigate some of the other risks, such as operational threats and talent productivity.”