Latest News | Speed of Digital Transformation Key Risk Management Challenge: PwC Survey

New Delhi, July 12 (PTI) Speed of digital and other transformation is a significant risk management challenge, opined majority of business executives in the country, according to a survey conducted by global consultancy firm PwC.

PwC's 2022 Global Risk Survey: India highlights also revealed that six in ten executives feel the need to actively seek external insights to assess and monitor risks in the increasingly disruptive business environment.

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"Nearly eight in ten business executives in India say that keeping up with the speed of digital and other transformations is a significant risk management challenge," it said.

The survey saw participation from 109 Indian respondents, with leading business executives making up 72 per cent of the sample and the rest comprising risk management (13 per cent), audit (10 per cent) and compliance (6 per cent) professionals.

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In terms of organisational scale, PwC said 81 per cent of the Indian respondents are executives in large companies (USD 1 billion and above in revenues), while 42 per cent are in companies with USD 10 billion or more in revenues.

"In an environment where change is constant, risk management capabilities provide the greatest value to board members and business leaders when they are embedded within the organisation's strategic planning and decision-making processes. Informed by a panoramic view of emerging risks, business leaders can make confident decisions in pursuit of their strategy," said Sivarama Krishnan, Partner and Risk Consulting Leader, PwC India.

As per the survey, 88 per cent of business leaders are increasing their spending on technology and digital capabilities in the risk function workforce.

Seventy per cent of business leaders are increasing overall spending on risk management technology, and 67 per cent are investing in risk culture and considering behavioural risk in 2022.

Also, 64 per cent of business executives report that their risk function is actively seeking external insights to assess and monitor risks.

While 76 per cent of organisations report that having technology systems that don't work together is a significant risk management challenge, just 28 per cent of those are addressing that challenge in a formal, enterprise-wide manner, PwC said.

The survey also finds that when organisations embrace risk management capabilities as a strategic organisational capability, they are five times more likely to be very confident in delivering stakeholder confidence, a growth-minded risk culture, increased resilience and business outcomes.

PwC said the 2022 Global Risk Survey is a survey of 3,584 business and risk, audit and compliance executives conducted from February 4 to March 31, 2022.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)