Cyber risks and inflation top concerns for businesses
Cyber risks and inflationary risks are the two top concerns for companies. 37% of organisations believe they are “highly” or “extremely” exposed to cyber risks – narrowly behind inflationary risks (39%) – while leaders responsible for managing risk rank cyber higher than inflation, according to consultancy PwC’s Global Risk Survey.
Only 10% are using advanced and predictive analytics to refine and innovate risk-management. 57% say preparing for investments in technology is the single biggest trigger to review their risk landscape
“‘Risk Pioneers’ are overwhelmingly (73%) likely to have an enterprise-wide technology strategy, see GenAI as an opportunity, and have greater risk appetite alignment with teams.”
The survey also finds that as businesses look to new and emerging technologies such as Generative AI, machine learning, automation, cybersecurity and the cloud to unlock value and transform their operations, it is also playing a significant role in shaping that organisation’s exposure to risk.
57% say preparing for technology investments, from cloud to emerging technologies such as GenAI, is the single biggest trigger for an organisation to review its risk landscape.
60% see GenAI as an opportunity, compared to just 35% who see changes in regulation, or 28% who see supply chain disruption as an opportunity.
“‘Risk Pioneers’, a top performing group of organisations – constituting 5%2 of survey respondents and spread across all industries – are blazing a trail in reframing risk as a value creation opportunity”, according to the survey.
“They are overwhelmingly (73% v 53% of those surveyed) likely to have an enterprise-wide technology strategy and roadmap; are 1.8 times more likely to say they are “very confident” in balancing growth and managing risk; 1.8 times more likely to see GenAI as fully an opportunity than risk; and are 1.6 times more likely to proactively take risk to create opportunities versus prioritising safe or low risk strategies.”
“They are also significantly more likely to be upskilling internal teams on risk-related capabilities and express greater alignment with their CEO/board on levels of risk appetite (32% matching that of their CEO and board, compared to 22% of overall respondents).”
PwC says that while there is a clear ambition among most organisations to take a more tech-powered approach to risk, there is a clear gap in capabilities and execution.
“Just one in ten (10%) are already using advanced and predictive analytics, cutting-edge tech and data for managing risk and are continuously refining and innovating.”
“Furthermore, many sit at the initial and developing stages of tech/data maturity, with just 14% exploring or having just started using technology and data for risk management, whereas less than one-quarter (24%) are using basic technology and data tools for risk management or have established technology and data procedures for risk management.”
The survey also finds that as businesses look to new and emerging technologies such as Generative AI, machine learning, automation, cybersecurity and the cloud to unlock value and transform their operations, it is also playing a significant role in shaping that organisation’s exposure to risk.
“The survey highlights that if organisations don’t take risks, they will not progress. So if organisations are to grow, build resilience, and see sustained, long-term outcomes, they should follow the lead of ‘Risk Pioneers’ – organisations with a proactive approach to risk, an enterprise-wide risk strategy, and strong alignment on risk appetite between teams”, says Sam Samaratunga, Global and UK Head of Risk Services, PwC UK.
More than 3,900 business and risks leaders – from the boardroom and C-suite, and across tech, were included in the survey, according to PwC.
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