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In the current turbulent business environment, nearly eight in 10 business executives in India say that keeping up with the speed of digital and other transformations is a significant risk management challenge, a new report said on Tuesday. Six in 10 executives also feel the need to actively seek external insights to assess and monitor risks in the increasingly disruptive business environment, according to the report by global consulting firm PwC.
While 88 per cent of business leaders are increasing their spending on technology and digital capabilities in the risk function workforce in the country, 64 per cent of business executives report that their risk function is actively seeking external insights to assess and monitor risks.
“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,” said Sivarama Krishnan, Partner and Risk Consulting Leader, PwC India.
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The changing work environment brought on by the pandemic continues to disrupt talent and labour markets. Supply shortages, sanctions and rising raw material costs are heightening risks within supply chains as organisations deal with upstream supply chain risks related to subcontractors and other fourth parties that further complicate risks. Many executives find the need to revise and adapt their strategies and operating models at a rapid pace, mentioned the report.
“Investment in risk processes, frameworks and enabling systems is needed to help an organisation deploy a standardised and consistent approach to risk management,” the findings showed.
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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, the report noted. “They’re almost twice as likely to project revenue growth of 11 per cent or more over the next 12 months,” it added.
