A new survey from PwC shows executives are struggling to keep up with the volume and variety of risks, including surging inflation, supply chain constraints and the war in Ukraine which are stacked on top of existing worries about cybersecurity, ransomware and rapid technology changes.
According to the survey results, 79% of the 3,584 business and risk, audit, compliance executives polled in February and March indicated that keeping up with the speed of digital and other transformations presents a significant challenge.
Companies are leaning more on risk management technology, with 72% planning on increasing their spending on technology to support the detection and management of risks. The survey found that 39% of the business executive respondents said they are making better decisions and achieving sustained outcomes by consulting with risk professionals early.
Diversity has become more important as well, with 70% of the respondents saying they are prioritizing diversity in their risk teams.
While 38% of the respondents reported that their risk function is not actively seeking external insights to assess and monitor risks, accountants and auditors can play an important role in the risk management process.
Adjustments are necessary to risk management, with 22% of the survey respondents indicating they’re realizing benefits from defining or resetting their risk appetite and risk thresholds, while 56% are investing in risk culture and considering behavioral risk in 2022. Despite the concerns, 47% of the respondents said they’re very confident in their risk function’s ability to build a more risk-aware culture.