The pace for the next 3 to 5 years will be challenging, according to a recent study.
Risk management is becoming more complex and challenging, and leaders and their teams are having to adjust to keep up with the pace. Audit executives are feeling the pressure, and so are their counterparts in all areas of leadership.
Indeed, 61% of 400 executives surveyed earlier this year said they expect to see a significant increase in the level of risk they will be responsible for in the next three to five years, according to a new Future of Risk report by audit and accounting network KPMG. To manage potential threats, 90% of respondents said their businesses have increased their pace of risk transformation, a KPMG press release said.
Among other findings:
- 68% of respondents believe integration and interconnection of risk management systems, domains, and processes significantly enhance the effectiveness of risk-related decision-making.
- Artificial intelligence (AI) and generative AI (GenAI) were identified as the most popular types of technology for managing additional risk responsibilities in the next three to five years.
- The top focus risk management professionals cited for the next one to three years is to proactively adapt to new risk types such as AI; geopolitical; reputation; environmental, social and governance (ESG); IT and cyber. The second-biggest priority is to leverage advanced analytics and AI for risk management.
- 90%) of respondents believe the pace of risk management transformation, fueled by technological disruptors, has increased, with 56% indicating it has risen sharply.
- 41% of executives expect to spend more than half of their risk management budget on technology in the next 12 months, compared with just 28% in the previous year.