By Jim Wetekamp, CEO of Riskonnect | Published by Spend Matters, January 10, 2024 |
Risk Management Will Evolve with Emerging Risks
Businesses are bracing for another challenging year ahead as an influx of threats hits the enterprise. Economic uncertainty still looms. Geopolitical instability is at a high and impacting supply chains. Generative AI risks and governance concerns are rising. Ransomware, deepfakes and other sophisticated cybersecurity and payment fraud issues are emerging and evolving at full speed.
A bright spot amidst the challenges is that companies’ approaches to managing risk are evolving just as fast. Many organizations are actively choosing to change how they govern, prioritize and oversee risk. More than half (52%) of organizations have a chief risk officer, and another 6% plan to hire one within the next year. This is a dramatic increase compared to recent years when chief risk officers were much less common. Risk management team headcount and spending on risk management technology has held steady despite the economy. Nearly a third of companies (28%) have reported budget increases for risk management technology in the past six months. We’ll likely see more organizations invest in their risk functions and capabilities next year as the need to protect the business becomes even more urgent.
We’ll also continue to see notable developments in artificial intelligence, data analytics and automation to enable continuous automated compliance. This means AI risk management and governance will need to be a higher priority. AI use cases will include incident severity scoring, control mapping and testing, policy and business impact analysis generation, and smart suggestions.
Find out what else Jim had to say by reading the full article in Spend Matters. >>
