Companies adopting emerging technologies ranging from cloud, Internet of Thing and several others, but many are not assessing the risks that come with their adoption, a new KPMG study has revealed.
According to KPMG LLP’s Tech Risk Management Survey, many companies are aware of the risks of Mobile, Cloud, Internet of Things, Robotic Process Automation and Artificial Intelligence, but they not including these technologies in risk assessments.
Companies across various industries are increasing their focus on emerging technologies to help transform their businesses and are embracing emerging technologies to achieve these goals.
Nearly half (47 percent) of the 200 senior IT risk management executives surveyed whose companies have adopted mobile applications and devices have not included them in recent IT risk assessments.
According to KPMG, the findings for other emerging technologies are similar, with 46 percent that adopted Internet of Things (IoT), 44 percent that adopted cloud computing, 34 percent that adopted artificial intelligence (AI) and 32 percent that have adopted robotic process automation (RPA) not assessing their risks.
Other Key Findings of the KPMG study include:
- IT Risk Management: Value Center Aspirations, But Still Treated As a Cost – While 88 percent of survey respondents agree that IT risk management is driving value for the organization:
- Nearly half (49 percent) expect their IT risk management spending to stay the same or decrease over the next three years.
- Less than half are involving IT risk management in their IT initiatives at the outset of the project.
- More than ¼ (27 percent) have a perception that IT risk management impacts time to market, challenging the notion that ITRM adds value to the organization.
“Change and disruption has never moved faster and the speed of technology deployment is critical, but it can’t be at the enterprise’s expense,” Phil Lageschulte, Leader of Global IT Advisory Services for KPMG says. “Tech risk management should anticipate changes while or before they happen and determine the associated risks. Accordingly, tech risk management should be involved in strategic business planning, embedding the risks and adding value upfront.”
While not actively assessing the risks of adopting emerging and disruptive technologies, the majority of those surveyed are very aware that these risks exist. And, the risks may only escalate as companies seek to increase their investment in these technologies. The survey found that companies expect to make significant investments over the next year in mobile (48 percent), IoT (46 percent), cloud computing (46 percent), RPA (41 percent) and AI (40 percent).
“Tech risk management is challenged to improve how it filters through data in a meaningful and consistent way so that it can efficiently communicate how this data impacts the business,” Vivek Mehta, Partner in KPMG LLP’s Emerging Technology Risk Services practice says. “The proper parameters should be created to classify data so that the organization can make well-informed business decisions from it.”