A new generation of threats sparks change in how companies manage and combat enterprise risk

October 16, 2023 09:00 AM Eastern Daylight Time
ATLANTA & LONDON–(BUSINESS WIRE)–While 93% of companies recognize the risks associated with using generative AI inside the enterprise, only 9% say they’re prepared to manage the threat, according to a new global research survey of more than 300 risk and compliance professionals. The proprietary research, which was conducted and released today by Riskonnect, reveals a profound AI risk management gap: To date, only 17% of risk and compliance leaders have formally trained or briefed their organizations on the risks of using generative AI.

“Generative AI is taking off at lightning speed and ushering in a new wave of business risks. Our research shows that most companies have been slow to respond, which creates vulnerabilities across the enterprise,” said Jim Wetekamp, the CEO of Riskonnect, the leader in integrated risk management (IRM) solutions. “The rise of generative AI is the latest example of how quickly today’s risk landscape evolves. We’ve officially entered a new generation of risk.”

Riskonnect’s research – The New Generation of Risk – explores the new threats facing organizations and the strategies risk management teams are using to navigate the uncharted territory. Key findings include:

  • The generative AI threat is broad and interconnected: Companies’ top generative AI concerns include data privacy and cyber issues (65%), employees making decisions based on inaccurate information (60%), employee misuse and ethical risks (55%), and copyright and intellectual property risks (34%).
  • Economic uncertainty and cyber concerns remain a persistent threat. The top four risks affecting organizations today, in order, are talent shortages and layoffs, recession risk, ransomware and security breaches, and state-sponsored cyberattacks.
  • Companies could be doing more to manage risk. Sixty-three percent haven’t simulated their worst-case scenario. Only 5% feel prepared to assess, manage, and recover from a future unknown and unpredictable risk event.
  • Unreliable data hinders risk and compliance teams. Only 23% say they’re very confident in the accuracy, quality, and actionability of their risk management data. Just 5% are very confident in their ability to extract, aggregate, and report on risk insights to fuel decisions.
  • Today’s talent shortages heavily impact business performance. The biggest risks companies associate with labor shortages and layoffs: mistakes and shortcuts driven by worker burnout (66%) and an inability to reach strategic goals (41%).

Enterprises Invest to Take on the New Generation of Risk

The evolving threat landscape – along with the consistent, market-shaping disruptions over the past several years – has forced organizations to rethink how they approach enterprise risk management.

Riskonnect’s research found that over half (52%) of organizations now have a chief risk officer, with another 6% planning to hire one in the next 6-12 months. Risk management functions are also growing, despite layoffs elsewhere, with 82% of companies saying their headcount for risk management has increased or remained the same in the past six months. Risk departments are also getting more funding: Nearly a third of companies (28%) have reported budget increases for risk management technology in the past six months.

“We are seeing meaningful and positive changes to how companies identify, prioritize, and manage risk,” said Wetekamp. “Today’s risk leaders recognize that the threat landscape doesn’t sit still. They are planning for worst-case scenarios, prioritizing enterprise-wide visibility, and investing in tools to combat the full and interconnected spectrum of risk.”

Access the full report to dive deeper into the new generation of risk.

About Riskonnect

Riskonnect is the leading integrated risk management software solution provider. Our technology empowers organizations with the ability to anticipate, manage, and respond in real-time to strategic and operational risks across the extended enterprise. More than 2,500 customers across six continents use our unique risk-correlation technology to gain previously unattainable insights that deliver better business outcomes. Riskonnect has more than 1,100 risk management experts in the Americas, Europe, and Asia. To learn more, visit www.riskonnect.com.
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Contacts
Riskonnect Media Contact:
Corporate Ink for Riskonnect
Anna Morais
riskonnect@corporateink.com