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'potential deterioration' is correct and usable in written English.
You can use it in a sentence to describe something that might become worse or deteriorate over time. For example, 'We need to monitor the situation closely to prevent potential deterioration of the company's financial situation.'.
Exact(29)
But management built much too lofty expectations into their estimates, and when the potential deterioration in those estimates became evident months ago, they never acknowledged it.
The Nuclear Regulatory Commission investigated and said plant workers had failed to spot potential deterioration in a part that contributed to the fire.
The hot-air heating system has been proved to present a potential deterioration risk to artworks, as it increases the supply, transport and deposition probability of air pollutants.
Although the country is rich in agricultural potential, deterioration of the transportation network and agricultural services since independence have led to a return to subsistence agriculture and a collapse of market production.
Here the role of bisphosphonates is examined in terms of the potential deterioration in fracture resistance resulting from both intrinsic (plasticity) and extrinsic (shielding) toughening mechanisms, which operate over a wide range of length-scales.
The Greens also demanded reform of local government, including a directly elected mayor of Dublin, and the establishment of an independent electoral reform commission to investigate party financing, which was agreed.The main problem for Mr Ahern, however, will not so much be the overall policy direction or choice of partners, but potential deterioration of the economy in coming years.
Similar(31)
Egypt's latest spasm of violence is by far the worst incident amid a growing catalogue of disillusion with the progress of the February revolution – and a shocking reminder of the potential for deterioration.
Because of this, potential mechanical deterioration between the challenges was avoided by packing the documents into sturdy envelopes.
According to ACI Committee 201 (1991) ettringite formation derived from ferroaluminate phase has also been assumed as a potential sulfate deterioration problem.
Although there was little official response, some security experts expressed concern about a potential further deterioration in security in Egypt's Sinai Peninsula, which borders Israel.
As an interim summary, it may be pointed out that some investigations are currently pleading for potential cognitive deterioration after endovascular treatment of carotid stenoses [16], [17].
More suggestions(15)
potential erosion
potential degeneration
potential degradation
potential downgrading
prospective deterioration
potential deteriorating
potential deteriorated
potential worsening
opportunity deterioration
would be deterioration
potential escalation
anticipated deterioration
potential aggravation
potential downturn
potential breakdown
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com