Cyber and digital technology risks are a key concern for businesses and risk leaders in 2023, even as 60% see GenAI “as an opportunity for their businesses,” according to PwC’s 2023 Global Risk Survey, published recently.
More than 3,900 business and risks leaders – “from the boardroom and C-suite, and across tech, operations, finance, risk and audit – were surveyed in 2023, with the findings showing that while 39% of respondents feel “highly” or “extremely” exposed to inflationary risks, cyber and digital technology risks are top concerns, at 37%, and 32%, respectively.”
The survey also finds “that as businesses look to new and emerging technologies such as Generative AI, machine learning, automation, cybersecurity and the cloud to unlock value and transform their operations, it is also playing a significant role in shaping that organization’s exposure to risk.”
Sam Samaratunga, Global and UK Head of Risk Services, PwC UK, said:
“In a world that is persistently in a state of flux, it is clear that organisations need to transform, with new and emerging technologies playing a critical role in that transformation. So it is no surprise that cyber and digital risks are top-of-mind in 2023, with those leaders responsible for managing risk ranking cyber higher than inflation. However, the survey highlights that if organisations don’t take risks, they will not progress. So if organisations are to grow, build resilience, and see sustained, long-term outcomes, they should follow the lead of ‘Risk Pioneers’ – organisations with a proactive approach to risk, an enterprise-wide risk strategy, and strong alignment on risk appetite between teams.”
GenAI is viewed as an opportunity, but is also triggering risk reviews
Technological change is shifting “the risk agenda inside businesses, with 57% of respondents noting that preparing for technology investments, from cloud to emerging technologies such as GenAI, is the single biggest trigger for an organization to review its risk landscape.”
This is higher than organizations which are triggered “into a review by a risk event (50%) or entering new markets (46%).”
Technology disruptors, those that “are more focused on value creation than value protection, are also much more likely to be seen as opportunities, rather than risks, compared to other external non-tech disruptors.”
For example, 60% see GenAI “as an opportunity, compared to just 35% who see changes in regulation, or 28% who see supply chain disruption as an opportunity.”
‘Risk Pioneers’, a top performing group of organizations – constituting 5%2 of survey respondents and spread across all industries – are blazing “a trail in reframing risk as a value creation opportunity.”
They are overwhelmingly (73% v 53% of those surveyed) likely “to have an enterprise-wide technology strategy and roadmap; are 1.8 times more likely to say they are “very confident” in balancing growth and managing risk; 1.8 times more likely to see GenAI as fully an opportunity than risk; and are 1.6 times more likely to proactively take risk to create opportunities versus prioritizing safe or low risk strategies.”
