The threat of recession ranks as the top external risk to businesses, while employee burnout is the top internal risk, according to a report by executive search firm Boyden. It found 38% of business leaders are worried about a recession, and 24% cite employee burnout as a top risk.

Despite the recession risk, not all business leaders are ready. The report found 38% of leadership teams are somewhat or not at all prepared for recession, and 35% have little or no confidence in having the right talent for their strategy.

The report also found that board-level respondents see human capital as the top driver of organizational growth; 44% said they need to strengthen their own skills in artificial intelligence, robotics and machine learning. In addition, in preparation for a recession, 33% of board respondents reported increased engagement by the leadership team with the board.

“The board-level focus on talent is an ongoing reflection of the deeper engagement of the board in day-to-day business as leaders and organizations strive to adapt in real time,” Boyden President and CEO Chad Hesters said. “Coupled with this, digital capabilities and strategy have become intertwined, accelerating the pace of change and shining a light on the need for digital fluency at all levels of the organization.”

Meanwhile, for growth prospects, 77% of global business leaders are very confident or confident in their organization’s potential. However, 41% said their organizations need to strengthen skills in AI, robotics and machine learning to achieve growth, while 35% have little or no confidence in having the right talent to align with strategy.

Boyden conducted the survey in this quarter among 1,000 senior executives from different industries globally.