IT Exposing Businesses to Gaps in Risk Management
When executives were asked what technological change puts organizations at risk, failure of new IT systems to deliver expected benefits ranked as the highest concern in a PwC survey.Business risks are rising across the board, with 75 percent of executives reporting increased risks to their business, according to a survey of 1,940 business executives and risk managers worldwide by PricewaterhouseCoopers (PwC). Internal business changes intended to address dynamic market shifts have created a more complex risk landscape for businesses around the globe, and traditional risk management systems have not evolved fast enough to monitor, track and manage today's intensified risk climate, further compounding the problem, the report revealed. A majority of executives foresee continued significant market changes that will dramatically impact their companies, particularly in three key areas over the next 18 months—half of survey respondents pointed to rapidly changing customer needs, 56 percent noted increasing regulatory complexity, and 58 percent cited technological change and related IT risks. While improving competencies is an important step in closing capability gaps, survey respondents have made or are planning to make broader changes in the next 18 months, including 84 percent who plan to create a risk-aware culture, making risk management a priority for people at all levels of the organization.
The survey found that 82 percent plan to develop processes to identify and monitor risks, including non-traditional risks, while 79 percent plan to conduct more non-financial audits to ensure that emerging threats like cyber-security are being addressed and 79 percent plan to integrate risk and business strategies, ensuring that risk is factored into all strategic decisions.