Business Strategies Should Focus On Digital Risks, Says KPMG Study
Business strategies focusing on digital transformation will need to account digital risk as a key risk, says a recent report by KPMG that offers insights into the dynamic nature of risk that enterprises face today and offers perspectives on digital risk and imperatives, risk management frameworks and defense mechanism and compliance measures.
Today digital technologies are rapidly changing the way that companies create and deliver value to their customers. Over the past five years, digital disruptors have destroyed some businesses and this pace of disruption is accelerating, thereby making the digital space a multi-device, multi-mode, omni-channel world where quality is measured not by schedules, budgets, and defects but by user experience including both external customers as well as employees. A ’one size fits all’ strategy is no longer an option.
Multiple initiatives must be undertaken by organisations in order to deal with real time monitoring, advanced skills and expertise related to IT, and strategic information structure to operation, development, information system, and data integration.
Below are the key highlights of the survey as well as the report :
Ø Top 3 Digital Risks in Organisations – Operational Risks, Lack of skillsets and Vulnerable systems
Ø Most Impacted Departments by digital transformation – Operations, Customer Relationship Management and Sales& Marketing
Ø 95% respondents suggest that a Chief Digital Transformation Officer would play a key role in managing digital risks
Ø 67% respondents consider digital risk as a key risk
Ø 90% respondents believe that digital risk exposure is directly proportional to the use of digital technologies
Ø 40 % respondents treat digital risk as a separate risk domain
Ø 89 % respondents believe that less that 3% of digital transformation budget is allocated to digital risk domain
Ø 60 % respondents stress on the need for enhancing existing cyber security frameworks to address digital risks
Atul Gupta, Partner and Head, IT Advisory and Cyber Security Leader, KPMG in India said, “Businesses today are embracing digital technologies like never before and it is the CEOs themselves who taking personal ownership of driving digital adoption across their enterprises. Though this brings in agility it also brings to the fore an important and key aspect of ‘digital trust’ . To ensure that this trust is always there, managements of organisations across industries have recognized the need to evaluate the existing risk management practices and also rejig their current frameworks being adopted for managing risks.”
He further said, “There is a rising sense of `cyber certainty’ among CEOs, as they recognise that the likelihood of their organisation becoming a victim of a cyberattack is a case of `when,’ and not `if’. Therefore organisations, have a big responsibility to ensure that there is a focused effort that is being made with specialised knowledge, skillset and commitment for managing digital risks on a day to day basis”