Talent-related challenges are among the most pressing concerns facing enterprise leaders in 2026. In fact, three of the top five near-term risks identified in the 2026 Executive Perspectives on Top Risks and Opportunities Report focus squarely on the workforce:

• #3 – Adoption of new and emerging technologies elevating need to upskill/reskill our workforce
• #7 – Skills and talent acquisition and retention, leadership development and succession challenges
• #9 – Talent and labor availability

Together, these risks reflect rising pressure to build a resilient, adaptive workforce—while also creating an environment where people are equipped and empowered to recognize and respond to risk.

Why Talent Challenges are a Concern in 2026

Executives and board members across industries cite a convergence of factors fueling these concerns:

• Demographic shifts and looming retirements creating leadership gaps
• Ongoing competition for high-performing talent, especially in technical and strategic roles
• Hybrid work structures that challenge team cohesion and culture
• Rising employee expectations around purpose, autonomy, and transparency
• Weaknesses in succession planning, knowledge transfer, and leadership development
• Cultural blind spots that make it harder to identify and escalate risks early

Unlike many external risks, these are internally driven—and often within the organization’s power to influence, if leadership is aligned and proactive.

ERM Implications and Strategy

Effective ERM leaders are increasingly involved in cross-functional conversations around:

• Succession planning and leadership pipeline development
• Risk culture assessments and employee engagement
• Aligning ERM practices with human capital strategy and values
• Helping leadership teams explore the risk implications of retention gaps, culture weaknesses, or siloed teams

Many organizations are pairing traditional ERM processes with culture-focused tools and talent-specific risk assessments to stay ahead.

5 Questions to Guide a Leadership Conversation on Talent Risk

Use these questions to prompt discussion with your executive team, CHRO, or board risk committee:

1. Where are we most vulnerable to turnover in key roles, and do we have strong succession plans in place?
   What’s our contingency plan if multiple senior leaders leave within a short window?
2. How effectively does our organizational culture support open, timely communication about risk?
   Do employees feel safe escalating concerns or surfacing issues that could impact performance?
3. Are we losing institutional knowledge due to retirements or departures?
   How are we capturing critical expertise across teams or functions?
4. How aligned are our hiring and retention strategies with the skills needed to meet emerging risks—such as AI, cybersecurity, or ESG?
   Are we hiring for future risk, not just today’s needs?
5. What is ERM’s role in shaping workforce-related decisions or monitoring cultural risk indicators?
   Is talent risk part of our ongoing risk monitoring and reporting process?

These questions reflect recurring themes raised by global executives in the 2026 Top Risks and Opportunities Survey and in interviews conducted by the NC State ERM Initiative.

About the Experts Behind the Report

This article is based on insights from the 2026 Executive Perspectives on Top Risks and Opportunities Report, authored by:

• Mark S. Beasley, PhD – Director, ERM Initiative; Alan T. Dickson Distinguished Professor of Accounting
• Bruce C. Branson, PhD – Associate Director, ERM Initiative; Professor of Accounting
• Donald P. Pagach, PhD – Director of Research, ERM Initiative; Professor of Accounting

The report was developed by the ERM Initiative at NC State University’s Poole College of Management, in collaboration with global consulting firm Protiviti.

The NC State ERM Initiative is a leading source of applied research and executive guidance for enterprise risk leaders in business, government, and higher education.