Chris Hall provides updates for tax leaders on the global risk environment.

With 2025 off to a turbulent start, it’s a good time to reassess the evolving risk environment. Protiviti’s latest annual report on near- and long-term risks, based on a survey of more than 1,200 global C-suite executives and board members, delves into the top macroeconomic, strategic and operational concerns. Since all of those risk areas are of great interest to CFOs, it makes sense for the tax leaders who report to finance chiefs to keep tabs on these issues. 

The report analyzes 32 specific risks. Economic conditions are the largest near-term worry, rated at 3.26 on a five-point scale from “no impact at all” to “extensive impact.” The factors contributing to this risk include inflationary pressures, deglobalization and changes in fiscal and central bank policies in major economies. 

Cyber threats are the second-ranked near-term risk, rated at 3.21. These require constant vigilance and adaptation to protect the company’s sensitive information, market value and brand image. 

The report covers a number of risks that will be of particular interest to tax leaders, including: 

• Talent and labor concerns: A large cluster of risks here includes attracting, developing and retaining top talent; ensuring talent availability in an overall aging workforce; and navigating increases in labor costs that may impact profitability targets. A related risk stems from the adoption of AI and other emerging technologies requiring skills that are in short supply. Businesses are channeling their AI efforts towards identifying the most promising use cases while stepping up their investments in talent and skills.
• Regulatory risks: The challenges of the regulatory environment – including constant change, increased scrutiny and aggressive enforcement – are a global concern. Businesses must navigate different, often conflicting and over-lapping, regulatory regimes, adapting their strategies and market offerings as regulations evolve in order to mitigate the risk of non-compliance.
• Speed of disruption: Boards and chief executives worry about innovations powered by advanced technologies and new market forces that may outpace their companies’ ability to compete. In addition to providing a general perspective of what’s on the minds of board members and the C-suite – always a good thing for tax leaders to know – the report drills down on the views of various executive positions, including CFOs. Finance chiefs share many of the short-term risk assessments of their colleagues around talent and labor issues. In addition, they worry about resistance to change, which could restrict the business from adjusting its business model and core operations (rated at 2.76).  

For the long-term operational outlook, CFOs rate the top risks as the ability to attract, develop and retain top talent, manage shifts in the expectations of the workforce, and address succession challenges. This risk was cited by nearly one-third (32%) of Protiviti’s CFO respondents. 

Tax leaders, like CFOs, contend with a shrinking pipeline of talent. That makes 2025 a great year to enable your teams with the advanced technology they need to enhance their skill sets.