“The two new emerging risks relate to complexities of the IT and political environment made highly visible to executives and boards by current events,” said Zachary Ginsburg, Senior Director, Research in the Gartner Risk & Audit Practice. “While the upcoming U.S. election generates headlines over the candidates’ regulatory, trade and other proposals, organizations have difficulty considering the actual risk implications from the many scenarios that might unfold. Amplifying this uncertainty are recent U.S. Supreme Court decisions on federal agencies’ authority to set and enforce regulations.”

“Beyond politics, other global events, such as the July CrowdStrike outage, have raised questions about whether organizations over-rely on their largest IT vendors. For example, customers with a concentration of services with one vendor may face elevated risk in the event of outages, or they may face unanticipated changes in services depending on new regulations or legal decisions in the EU, U.S. or elsewhere. Because third parties, like SaaS vendors, rely on other vendors, organizations may not realize the full extent of their exposure,” said Ginsburg.

Two of the top five most cited emerging risks are in the technology category and two reflect political concern related to uncertainty around the regulatory and legal environment and the outcomes of global elections (see Table 1). Misaligned organizational talent profile moved down from the fourth-place ranking in the second quarter to the fifth most cited risk in the third quarter.