Being a smarter risk taker through digital transformation
Organisations are rapidly rolling out digital initiatives in an arena defined by more data, increased automation, sophisticated cyberattacks and constantly evolving customer expectations. While many technology risks aren’t new, the stakes are much higher as digital rollouts heighten risks beyond the technology itself. This puts risk professionals at a critical juncture.
"Risk managers need to build a holistic understanding of all risks and figure out how to deal with them. So much is changing, there’s digitisation on the one hand, but also geopolitical uncertainty and other macroeconomic events that all come together to make for far greater unpredictability than in the past," explains Pascal Tops, Partner, PwC.
He goes on, "risks come quicker than in the past and the type of risk is much more diverse, making risk much harder to predict and difficult to manage. As elsewhere, risk managers in Belgium need to step up and act to become agile enough to keep up with the pace of change."
Pascal Tops, Partner at PwC Belgium
How can risk functions help their organisation successfully move ahead with digital initiatives? Our 2019 Risk in Review Study into the digital fitness of risk management, compliance and internal audit functions shows that risk functions that are digitally fit enable their stakeholders to make smarter risk decisions, progress faster and enjoy greater-than-anticipated payoffs as their organisations move through digital transformation.
Digital maturity score on a scale of 0 to 100 based on PwC analysis and index calculation.
Base: 252 Dynamics; 249 Actives; 500 Beginners
We identified the top quartile of risk management, compliance and internal audit survey respondents based on their digital fitness scores across vision and roadmap, ways of working, stakeholder engagement, services model and operations as Dynamics. The second quartile, Actives, are those taking many of the steps necessary to become more-digitally-fit risk functions.
The balance, Beginners, are conducting or planning to conduct some of the activities measured, although in more ad hoc ways. Our 2019 Risk in Review Study focuses on Dynamics as they provide an important lesson: When the digital fitness of the risk function stays in lockstep with the organisation’s digital transformation, the benefits the organisation receives as it digitally transforms multiply.
When the digital fitness of the risk function stays in lockstep with the organisation’s digital transformation, the benefits the organisation receives as it digitally transforms multiply.
Effective at managing risks on digital journey
Q. How effectively is your organisation managing risks on its digital journey? Base: 244 Dyanmics; 240 Actives; 357 Beginners
Ahead of or on track with digital roadmap
Q. Which statement best describes your organisation's progress on its digital journey? Base: 231 Dynamics; 206 Actives; 357 Beginners
Willing to take on more risk than in the past
Q. What impact has your organisation's digital roadmap had on its risk appetite? Base: 231 Dynamics; 206 Actives; 357 Beginners
Dynamics are increasing their digital fitness on two fronts: by proactively plugging into digital initiatives and creating more-digital and more-data-driven functions in parallel, all of which helps them advise the stakeholders who are driving their organisations' digital initiatives. And that makes risk functions not only valuable, but also vital to an organisation’s digital success.