You’re not imagining it—business conditions really are changing at a breakneck pace. For instance, in Q3 2024, just 19% of North American CFOs thought the economy would be better in a year, Deloitte’s CFO Signals survey found. By Q4, 72% expected improvement. To build a business ready to weather these ups and downs, we’ve put together risks to keep in mind as you pursue your next big opportunity.
Blind spots and information gaps
If you don’t have a clear view into the corners of your business, managing risk becomes an exercise based on incomplete data, instinct, and memories of your last crisis. That may have sufficed in the past, but today the most effective companies can access comprehensive and granular data across departments, leaving companies with data gaps at a major disadvantage.
Supply chain constraints
In a 2024 EY survey, 88% of supply chain leaders reported their C-suite considers the supply chain a cost center, underscoring the shift in attitudes versus pre-pandemic views. One-in-five acknowledge they’re unprepared for disruptions, which could spell trouble in today’s global marketplace.
Cash shortfalls
Every leader understands the importance of cash flow, but shortfalls can still sneak up—even when business is booming. A cash flow crunch could be the result of a late payment from a usually reliable key account, or an unavoidable new expense. It could also come from sudden drops in customer demand that leave you with excess inventory. Even surging demand could result in a company overextending itself.
Regulatory and operational complexity
Expansion into new regions or countries is a common step for growing businesses. However, addressing new regulations that come with new markets can be a major undertaking—and easy to underestimate. Failing to fully understand pertinent rules and customs can open a growing business to significant fines and reputational damage.
Bad customer experiences
For many companies, acquiring new customers is an all-consuming goal. A major risk, however, is that new customer growth may come at the expense of existing customer satisfaction. Poor customer service is one of the most common sources of churn. If your base starts to feel overlooked, it may start looking around.
Excessive back-office overhead
When business is humming, it can be easy for executives to approve new expenses such as legal expenses, utilities, and travel. But these costs can dent your bottom line in a downturn or slowdown.
Aging, ineffective technology
If your business doesn’t run on reliable technology with market-leading capabilities, you’re on the wrong side of an uneven playing field. AI has the potential to widen the gap between the technology haves and have-nots, as it gets built into software used to run key processes.
Want to learn more? Check out the full business guide, C-Suite Risk Management Checklist: Navigating Critical Business Risks, for more on these risks and actionable steps you can take to address each.
About Oracle NetSuite
Oracle NetSuite supports over 41,000 customers in 219 countries and territories around the world. As the world’s first cloud company, it provides an integrated business system with embedded AI that delivers powerful financial management, supply chain, customer experience, HR capabilities, and more.
