2024 Risk Management Global Corporate Survey: Emerging Risks Are Driving The Adoption Of Advanced Technology Solutions

2024 Risk Management Global Corporate Survey: Emerging Risks Are Driving The Adoption Of Advanced Technology Solutions

The upcoming 2024 Verdantix risk management global survey provides insights into the priorities, budgets and technology preferences of 300 senior risk management leaders across 16 industries and seven economic regions. Nearly 30% of respondents work for firms with annual revenues between $250 million and $1 billion, while the remaining 71% work for organizations with revenues over $1 billion.

The survey explores a wide range of topics, including technology goals and investment priorities for risk management over the next two years; views on materiality of ESG and physical climate risks; and the application of AI across various use cases. It also delves into the materiality of various risks over the last year, spanning cyber security, financial, third-party and data privacy. Key findings from our survey show:

• Many firms are still in the early stages of their risk management digital transformation.
  Almost one quarter of respondents indicated that developing a risk management digital strategy and moving away from spreadsheet-based processes is the highest priority for their function over the next two years. Additionally, nearly 30% rank it as a high priority. While some of these firms have partially implemented risk technologies, they are still utilizing spreadsheets in some capacity and are aiming to fully integrate technology to achieve greater efficiency in risk management.
  
  
• ESG, cyber and third-party risks are top of mind for risk executives.
  Across all industries, 25% of respondents indicated ESG/sustainability as the most significant risk category, followed by 23% for cyber risk and 19% for third-party risk. Growing regulatory pressures around ESG compliance, increasing sophistication of cyber attacks and the interconnected nature of global supply chains are top concerns for many, as they have the potential to disrupt operations and erode stakeholder trust.
  
  
• Organizations will prioritize spending on GRC and ESG software over the next two years.
  Nearly one in five risk leaders indicated they would increase spending by more than 50% on ESG reporting and compliance software (17%) and GRC software (19%). This is unsurprising, given that 2025 marks the initial year of reporting for the EU’s CSRD. Additionally, the growing intensity of regulatory scrutiny is driving organizations to adopt technology that enhances their governance and compliance frameworks.

To develop a comprehensive understanding of the findings, register for the risk management survey webinar and stay tuned for our upcoming report.