As businesses nationwide embrace emerging technologies to revolutionize their operations and client services, a critical aspect seems overlooked – assessing the risks that accompany their adoption. According to KPMG LLP’s Tech Risk Management Survey, a significant percentage of senior IT risk management executives across 200 surveyed companies have overlooked evaluating the risks associated with the adoption of various transformative technologies.
Alarming statistics reveal that almost half (47 percent) of these surveyed executives, whose companies have embraced mobile applications and devices, have omitted including them in recent IT risk assessments. Similarly, 46 percent have neglected risk evaluations for the Internet of Things (IoT), 44 percent for cloud computing, 34 percent for artificial intelligence (AI), and 32 percent for robotic process automation (RPA).
For more detailed insights, you can access the KPMG Tech Risk Management Survey Report: “Disruption is the New Norm”
Phil Lageschulte, Leader of Global IT Advisory Services at KPMG, stressed the urgency of aligning technology deployment speed with enterprise protection: “Tech risk management should anticipate changes, identifying associated risks and embedding them into strategic business planning, thereby adding value upfront.”
Despite their failure to actively assess the risks associated with adopting these emerging technologies, the majority of respondents are well aware of the existing risks. With companies projecting significant investments in the upcoming year, such as mobile (48 percent), IoT (46 percent), cloud computing (46 percent), RPA (41 percent), and AI (40 percent), these risks are likely to escalate.
Vivek Mehta, Partner in KPMG LLP’s Emerging Technology Risk Services, emphasized the need for effective data analysis to inform business decisions: “Tech risk management faces the challenge of efficiently filtering through data and establishing proper data classification parameters for informed decision-making.”
Additional Key Findings from the Survey:
IT Risk Management: While 88 percent acknowledge that IT risk management contributes value:
- Nearly half (49 percent) anticipate static or reduced IT risk management spending in the next three years.
- Less than half initiate IT risk management involvement in IT initiatives from the project’s outset.
- Over a quarter (27 percent) perceive IT risk management as impacting time to market, questioning its value addition to the organization.
Source: ISAAC M. O’BANNON