As risk differentiates across industries, companies are taking an industry-specific approach to risk management. Organizations face a hierarchy of risks based on industry trends, digital adoption rates, operational requirements, strategic outlook, and macroeconomic conditions. As they develop their strategic and operating agendas, companies are accelerating their investment in platforms and collaborative tools to capture and analyze these risks.
In LogicGate’s second annual Risk Management Survey, 190 senior executives across a range of industries shared their approach to risk management. With risk prioritized differently between industries, companies are taking an industry-informed approach to risk management.
Industries being reshaped by technology, such as those within the media, telecommunications, financial services, health care, technology, and retail sectors are facing an increasingly dynamic portfolio of risks. Therefore it’s not surprising that when survey respondents were asked whether risk management would be an area of investment in 2021, respondents in these industries facing significant digital disruption planned for even higher levels of investment in risk programs this year compared to last year. As these different sectors undertake digital transformation programs in response to the changing demands and risk landscape, companies are expanding exposure to digital risks, including cybersecurity risk, information security risk, third-party risk, and data privacy concerns.
Capturing these additional risks and building operational resilience among changing industry conditions supports investment in more holistic and insightful risk management platforms.
How Holistic Risk Platforms Support Responsive Risk Management
Sectors facing digital disruption recognize the necessity of a firmwide approach to risk. Relative to more stable industries, such as manufacturing or business services, that may feel greater confidence in using manual risk management tools such as spreadsheets and emails, industries undergoing digital transformation seek collaborative risk management solutions that support operational resilience. Given rapid changes in their industry, organizations are investing in more holistic risk solutions to inform and quantify risk as a key input in their decision-making.
Risk-informed decision making requires a shared framework and collaborative tools to support firmwide oversight of industry trends and challenges. With digital and other risks introduced by digital transformation programs, leveraging a holistic GRC tool that is accessible firmwide supports cross-divisional collaboration and more responsive risk oversight. Organizations in these industries can proactively prepare for changing market conditions
Discover what other risk professionals are focusing on to support operational resilience at their organizations and more key insights from LogicGate’s second annual Risk Management Survey by downloading the full report here.