The increased risks faced by businesses around the globe are changing the way companies adapt to market shifts, and subsequently creating so-called capability gaps among different companies, according to a recently released report from PricewaterhouseCoopers LLP.
The 2014 “Risk in Review: Re-evaluating How Your Company Addresses Risk” report finds firms creating a risk-aware culture by developing processes to find and monitor risks and conducting more nonfinancial audits.
The majority, or 75% of executives, say that their businesses are facing increased risks. External factors respondents believe will have the most impact on their organization over the next year and a half include technological change and information technology risks, 58%, increasing regulatory complexity and scrutiny, 56%, and changing customer needs and behavior, 50%.
Areas with the largest capability gaps were identified by respondents as fragmented risk data and analysis, 26%, risks from business transformation, 24%, and cyber risks, 23%. Other segments included merging risks, operational risks and third-party risks.