Survey report provides a snapshot of the State of Risk Management
- Published: Friday, 18 June 2021 08:27
MetricStream has released the results of a new survey on the State of Risk Management. The survey found that while cyber security emerged as an even greater risk concern during the pandemic, organizations with agile integrated risk management solutions responded better to pandemic-driven challenges.
The State of Risk Management survey asked chief risk officers and other risk professionals across various organization sizes and industries for feedback on how the risk management industry changed and adapted during the COVID-19 pandemic and what their current key priorities are.
Key findings include:
- The shift to digital during COVID-19 put cyber security risk at the forefront of organizations' concerns. Nearly half of survey respondents (48.91 percent) listed cyber security as their top business risk, and this was even more prevalent among respondents in the banking and financial services sector (52.94 percent).
- Organizations that had integrated risk management programs were much more prepared for the swift changes in risk threats caused by the pandemic. More than half of the organizations (52.63 percent) that had deployed an integrated risk solution did not make any changes to risk programs and strategies due to the pandemic. The IRM approach ensured agility and operational resilience, enabling them to quickly respond to the sudden disruptions brought about by the pandemic. On the other hand, companies with traditional and siloed approach had to make significant changes to their risk management approach to contend with the new normal.
- Risk professionals feel increased pressure to show the effectiveness of risk management and resilience programs. 61.96 percent of survey respondents said that determining the effectiveness of cyber security risk management is a top priority, while 45.65 percent said evaluating the strength of their operational resilience program and framework was most important.
- The banking and financial services sector is primed for a major overhaul of their risk management approach in the next several years. 58.33 percent of the total respondents from this sector use risk management software but not integrated with other areas while only 26.32 percent said that they are using an integrated platform to manage risks.
- Integrated risk management technology adoption still has a long way to go, despite the advantages it offers. Only 21 percent of survey respondents reported using one integrated tech solution for managing risk, cyber security, third-party management, and compliance. The remaining 79 percent use either office productivity software or risk management solutions that are not integrated with other functions.