Largest Digital Transformation | Taking Risks
Enterprises continue to experience a myriad of operational and financial pressures that call for innovative solutions. AI automation tools are key components of some comprehensive business transformations. Many risk departments have not evolved to the time and effort-saving options available. Digital transformation has given new insights into risks, but many teams still struggle to keep up with updates.
Many executives at the top of their company say that their risk exposure data is not up to snuff. It can’t provide them with any sort of long-term decision support. This number has remained unchanged for more than a decade, although companies seem to be getting higher risk tolerance every year. This means that companies are not benefitting from the abundance of data that is now available
“With technology driving developments, businesses need to focus on strengthening their digital skills and risk management function in order to make more comprehensive decisions about inherent risks,” says another PwC survey (Risk In Review). When companies are introduced to new technologies, it can be difficult for them to grasp the benefits and opportunities that they have at their fingertips. This is especially true when it comes to avoiding investment fraud. But more companies are beginning to take on this issue and make the business case by successfully adopting newer technologies that help improve these processes.
Taking risks
The risk management function is how a company manages and reduces the risks posed to the business by external factors, internal mistakes, and other undesirable outcomes. [Here’s insight into four common practices]
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Integrate the risk management function, alongside all other functions, into strategic digital planning,
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Upgrading skills and attracting new talented staff,
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Identifying appropriate applications from technologies, enabling the ability to respond in real time to risks immediately,
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Active involvement of decision makers for key digital initiatives, collaboration and coordination to develop a single risk picture.
According to the research, the processes and tools of risk management need to be changed in order to make decisions more data-driven and meet needs of digital technology, in order to anticipate and respond to risks in a timely manner, to the extent and at the pace required by the digital transformation of the business. Noter that more than 2,000 corporations, senior executives, board members and their experts in risk management, regulatory compliance and internal audit took part in the survey.
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Author: PC-GR
The World of Technology
