As much as 79 per cent of business executives believe that keeping up with the speed of digital and other transformations is a significant risk management challenge, according to PwC’s 2022 Global Risk Survey: India highlights. The survey saw participation from 109 Indian respondents, with leading business executives making up 72 per cent of the sample and the rest comprising risk management (13 per cent), audit (10 per cent) and compliance (6 per cent) professionals.
The study further revealed that 70 per cent of executives in India are increasing overall spending on risk management technology. The report also said that six in ten executives feel the need to actively seek external insights to assess and monitor risks in the increasingly disruptive business environment.
Sivarama Krishnan, partner and risk consulting leader, PwC India said, “Organisational risk management and broader resilience capabilities need to quickly adapt to support business agility and contribute proactive, robust and timely risk insights for decision making. In an environment where change is constant, risk management capabilities provide the greatest value to board members and business leaders when they are embedded within the organisation’s strategic planning and decision-making processes. Informed by a panoramic view of emerging risks, business leaders can make confident decisions in pursuit of their strategy.”
Amid the ongoing uncertain business environment, many executives find the need to revise and adapt their strategies and operating models at a rapid pace. In this context, PwC’s 2022 Global Risk Survey highlights five key actions that organisations should consider to drive their risk management capabilities forward:
1. Engage early and get risk insights at the point of decision
2. Take a panoramic view of risk
3. Set and employ risk appetite to take advantage of the upside of risk
4. Enable risk-based decision making through systems and processes
5. Double down efforts on top risks.
“Any one person cannot manage risks. When it comes to business, risk management is the ultimate team sport. Teams across all the three lines of defence in risk management need to work together to build a risk resilient organisation and thrive in an environment which is turbulent and disruptive,” Krishnan added.
The study also finds that when organisations embrace risk management capabilities as a strategic organisational capability, they are five times more likely to be very confident in delivering stakeholder confidence, a growth-minded risk culture, increased resilience, and business outcomes. And they’re almost twice as likely to project revenue growth of 11 per cent or more over the next 12 months. "Strong risk management capabilities help protect the organisation from downside risks and enable the organisation to look forward and take risks in pursuit of growth. It's a win-win situation," PwC said in the survey.
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