Ever more technological, ever more human

This article was originally published in Spanish in the Newsletter #23 of the Esade Center for Corporate Governance.   

The history of business and human progress has always been shaped by challenges, and although the risks we face today seem more complex and interconnected than ever, we are not the first to navigate uncertain waters. Consider the industrial revolution, which transformed industries but brought adverse working conditions and displaced communities, or the economic crises that have redefined business models in every century. Each generation of leaders has had to understand, adapt, and respond to unique risks, and ours is no exception. 

The great challenge today lies in the growing interdependence of these risks and the speed at which they evolve. Technological disruption, geopolitical uncertainty, the climate crisis, and the challenge of managing human capital not only coexist but often amplify one another. These are precisely the risks highlighted in the latest Risk in Focus, a report offering an overview of the main risks European companies will face in 2025, prepared by the Institutes of Internal Auditors from 20 countries in Europe, including Spain. 

Digital disruption, new technologies, and artificial intelligence

The pace at which technology evolves presents a scenario of constant disruption for businesses. Artificial intelligence (AI), in particular, promises to transform entire industries but also brings significant risks, especially because many organizations lack mature AI strategies supported by a robust governance model. It is evident that companies must adapt to the ris of AI, but the challenge lies not only in how to adopt these technologies but in how to do so responsibly, ensuring that their implementation does not lead to negative or unethical outcomes. 

Ciberscurity will remain the most important risk for companies

Artificial intelligence is a clear example of how risks interconnect and amplify each other. Beyond the difficulty of attracting the necessary talent to drive its adoption, AI acts as an accelerator of other common business risks, such as misinformation and cyberattacks. 

The rapid evolution of misinformation and the increasing sophistication of hacking make cybersecurity remain at the top of the list of risks, raising alert levels across all industries. Data protection and system integrity are crucial, and a failure in this area can result in significant financial losses and erosion of customer trust. 

As artificial intelligence continues to evolve, cybersecurity is expected to maintain its leading position as a top risk in the coming years. While security teams use AI's capabilities to reinforce their defenses, cybercriminals are also leveraging it to enhance their attacks. Organizations will need to invest in advanced protection technologies and specialized talent to safeguard their systems and sensitive data and, above all, adopt a proactive stance against this constant threat. 

In the face of technology, the human factor

Human capital is the backbone of any organization, and for the third consecutive year, it remains in second place as one of the main business challenges companies will face in 2025. 

Digitalization has driven an unprecedented demand for technical skills, forcing organizations to rethink their corporate cultures and adopt more flexible policies. Today’s employees seek companies whose values align with their own, prompting a redefinition of diversity and inclusion strategies. A company’s success will increasingly depend on its ability to retain diverse and specialized talent, offer opportunities for growth and development, and create an environment that values employee well-being. 

Macroeconomic and geopolitical uncertainty

Although geopolitical and macroeconomic uncertainty is declining in the risk ranking for 2025, it remains a significant threat. Political tensions and conflicts in regions such as Ukraine, Gaza, and the Middle East affect not only market stability but also the security of supply chains. Global companies are being forced to continuously evaluate their international operations and trade flows, adapting their strategies to an environment of volatility and risk. 

It is important to note that around 70 countries will have held elections this year, with potential policy changes that could challenge national stability. Here again, we see the interconnection of risks. Artificial intelligence and misinformation technologies are profoundly impacting political narratives due to their persuasive power—a reality that the World Economic Forum has already classified as a geopolitical risk. 

Climate change

Climate change and environmental sustainability are among the fastest-growing risks in the short and medium term. Companies must adapt to increasing regulatory pressure, such as the European Corporate Sustainability Reporting Directive (CSRD), which demands greater transparency and commitment to sustainability issues. Failure to address these requirements could result not only in regulatory sanctions but also in reputational damage that directly affects brand value. 

Climate change presents both direct and indirect risks that impact resource supply, business operations, and infrastructure—and unfortunately, we’ve seen this firsthand in recent events. Long-term visionaries understand that sustainability is not just about regulatory compliance but an investment in resilience.