Protiviti reported their survey results from executives in the for-profit sector regarding their Top Ten Risks for 2014:
- Regulatory changes and scrutiny
- Economic conditions
- Uncertainty surrounding political leadership
- Succession planning for key employees and board
- Organic growth
- Cyber threats
- Organizational resistance to change
- Privacy and identity security system protection
- Compliance with healthcare reform legislation
- Volatility in financial markets
Other concerns include setting appropriate executive compensation and addressing the growing demands of compliance oversight.
Not surprising, the risk concerns stated above are very similar to those experienced by executives in the tax-exempt sector. Why is that? To remain viable within a commercial setting, a for-profit business must remain healthy, relevant and profitable. To compare, a tax-exempt organization must also remain healthy and relevant in order to meet its mission statement into the future. The similarity is the need for relevance and strong financial health. The contrast is that the goal of a for-profit enterprise is solely profitability, not the specific product or service it provides. This differs fundamentally from a tax-exempt organization that exists to accomplish its mission. In other words, for the tax-exempt organization, financial health is a means to accomplish its goal, not the goal itself.