3Q20 Emerging Risks Monitor Report Shows New Working Model and Managing Remote Work Round Out Top Three Concerns.
Senior executives continued to focus intensely on a second wave of coronavirus infections around the globe and the implications for managing work as a result, according to the latest
Gartner surveyed 119 senior executives across most industries and geographies on the top concerns facing their businesses during the third quarter of 2020. The 'second wave' of COVID-19 topped executives' concerns for a second consecutive quarter, with the majority of the top 10 emerging risks having a direct connection to the pandemic and the response to it.
Executives continued to express operational concerns related to new working models, managing long-term remote work and their organizations' strategic responses in the face of the pandemic and related economic disruptions (see Table 1).
'The consistency with which executives around the world are highlighting the second wave of COVID-19 as the top risk is notable in light of a looming and significant
Table 1. Top Five Risks by Overall Risk Score: 4Q19-3Q20
Rank
4Q19
1Q20
2Q20
3Q20
1
Strategic Assumptions
Strategic Assumptions
The Second Wave
The Second Wave
2
Cyber-Physical Convergence
Cyber-Physical Convergence
The New Working Model
The New Working Model
3
Extreme Weather Events
2020 US Presidential Election
Strategic Corrections
Remote Talent Management
4
Data Localization
Data Localization
2020 US Presidential Election
2020 US Presidential Election
5
Macroeconomic Stagnation
US/China Trade Talks
Strategic Corrections
Source: Gartner (
Executives Grappling with Opportunities and Risks of New Working Models
One of the largest impacts beyond accounting for the health and safety of employees in a second wave scenario is the prolonged and dramatic impacts to how organizations will work effectively.
Gartner's data shows that nearly twice as many employees will work remotely permanently post-pandemic compared to pre-pandemic, with executives reporting that 19% of their workforce will be permanently remote now, compared to just 10% pre-pandemic.
'We are beginning to see executives come to terms with prolonged remote work in a way that wasn't feasible in the early stages of the pandemic, with the abruptness of the move revealing large operational holes in the ability to manage people and risks,' said
While organizations have put better controls in place for individual employee productivity, risks around maintaining culture, collaboration and team camaraderie remain high on executives' list of concerns.
Viewing Risks as Opportunities
Even as executives grapple with the new set of risks that come with remote work, many executives also see opportunities in the situation. Nearly half of 328 respondents (49%) to a Gartner poll on remote work highlighted the cost savings as an opportunity for organizations, while 27% highlighted the potential productivity gains.
'Since we started tracking emerging risks we have always counseled our clients to try to view these new risks as opportunities to improve their organization's responses,' said
More detailed analysis is available to Gartner clients in the full report and webinar recording 3Q20 Emerging Risks Report and Monitor.
Nonclients can complete free registration to read more in Emerging Risk Trends.
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