With continued market uncertainty likely on tap for 2012, organizations will face ten major business challenges that will influence their boards’ audit committee agendas for the year, according to Protiviti.

“Boards of directors and their audit committees must be aware of the hurdles and opportunities that lie ahead if business conditions remain uncertain in 2012 and be prepared to advise their organizations quickly and strategically,” says Joseph Tarantino, president and CEO of Protiviti.

The top business challenges and audit committee agenda items identified are based on Protiviti’s experience with and insights from a broad range of global organizations and their boards, which include financial institutions and companies outside the financial services industry.

Change—from new regulatory demands to industry restructuring—has dominated the financial services landscape in recent years and has shaped the 2012 top challenges for the industry. The top ten, [most of which depend directly or indirectly on technological considerations,] include:

1. Managing regulatory change.

2. Dealing with industry restructuring.

3. Managing the effects of globalization of financial markets.

4. Improving information for decision-making by focusing on data management and  analytics.

5. Increasing the focus on enterprise risk management as risk profiles change and regulators demand more.

6. Managing the impact of technological innovation on the business model.

7. Managing increasingly complex privacy and information security issues.

8. Improving business performance to enhance and sustain competitiveness.

9. Achieving true customer loyalty.

10. Attracting, retaining, and developing top talent.

Given that lineup, Protiviti recommends audit committees updating their institution’s risk profile to reflect changing conditions. “In financial services, the risk profile is dynamic and must incorporate emerging risks as they arise,” says Carol Beaumier, an executive vice-president with Protiviti and the firm’s global head of industry programs. “It is important to broaden the assessment of risk with a focus on the critical assumptions underlying the corporate strategy.”


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