NU Online News Service, Dec. 8, 12:26 p.m.EST

The need for talent and skill remains a top concern for Americanexecutives, despite high unemployment levels.

In the 2011 Lloyd's Risk Index, carried out by the EconomistIntelligence Unit, talent shortage placed second on the list ofconcerns of 500 C-suite and board-level executives.

Loss of customers was the top concern n North America andglobally.

“Talent and skills shortages” jumped to the number-two riskfacing businesses from 22 in the 2009 index. This was potentiallydriven by demographics, competition and productivity pressures,Lloyd's says. In North America, 45 percent of respondents ratetalent as a high or very high priority over the next year, comparedto 42 percent of those surveyed in Europe.

“There has been a change in emphasis in business-risk rankings,”says Richard Ward, Lloyd's chief executive, in the report'sforward. “In 2011, businesses are less concerned about theavailability of credit and more worried about the loss of customersand orders created by a new age of austerity in the West.

“More surprising is the way that the risk posed by talent andskills shortages has shot up the list to become the second-highestpriority for businesses,” he says.

He notes in a statement, “We have gone from a credit crunch to atalent crunch, despite the unemployment picture. CEOs feel they arelacking people with specific skills, but they are also concernedabout having leaders and managers who can help them navigate thedifficult global business environment.”

Finding and keeping talent was one of only two areas, out of 50included in the index, where businesses feel insufficientlyprepared. “Boosting talent retention” was named as one of the mosteffective risk management actions taken by management over the lastthree years, highlighting the need for businesses to retainstaff.