Confidence in organizational risk management slips
- Published: Tuesday, 01 October 2019 08:26
A recent survey for the 2019 Compliance and Procurement Sentiment report from Dun & Bradstreet found that 85 percent of respondents were confident about the effectiveness of risk management within their organization; 8 percent lower than the previous survey. 84 percent of respondents also forecast a decline in the future effectiveness of compliance and procurement functions.
The Compliance and Procurement Sentiment benchmarking report tracks areas of short and long-term success and concerns for compliance and procurement professionals and the 2019 edition highlighted the following main points:
- Compliance with laws and regulations remain top priority: an increasing number of regulations and a more complex regulatory framework has most likely contributed to compliance remaining a top concern among respondents for a third consecutive survey.
- Slow response to increased cyber security risk: although cyber security was the number one concern for respondents, almost half (48 percent) do not yet incorporate in their third party risk management. Half of this group of respondents had developed an approach to cyber risk but have been slow to implement.
- The right skill set is key to unlocking the value of AI: over half (53 percent) of respondents agree that artificial intelligence (AI) will improve efficiencies and enhance insight within their compliance and procurement functions. However, 45 percent are not confident they have the right skills in place to make full use of AI in the coming year, suggesting that additional training and focus on talent development is required.
- Respondents in the financial services (60 percent) and retail (55 percent) sectors saw the most potential benefit from AI for improved risk and fraud detection. However, 56 percent of government agencies and 47 percent manufacturing believe that data gathering and validation will benefit the most from artificial intelligence.