Many Companies are Not Assessing Risks of Adopting Emerging Technologies
February 7, 2018 | PRNewswireEstimated reading time: 2 minutes
While companies across various industries are increasing their focus on emerging technologies to help transform their businesses, many are not assessing the risks that come with their adoption, according to KPMG LLP's Tech Risk Management Survey. Nearly half (47%) 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. The findings for other emerging technologies are similar, with 46% that adopted Internet of Things (IoT), 44% that adopted cloud computing, 34% that adopted artificial intelligence (AI) and 32% that have adopted robotic process automation (RPA) not assessing their risks.
"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," said Phil Lageschulte, Leader of Global IT Advisory Services for KPMG. "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%), IoT (46%), cloud computing (46%), RPA (41%) and AI (40%).
"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," said Vivek Mehta, Partner in KPMG LLP's Emerging Technology Risk Services practice. "The proper parameters should be created to classify data so that the organization can make well-informed business decisions from it."
Other Key Findings
- IT Risk Management: Value Center Aspirations, But Still Treated As a Cost – While 88% of survey respondents agree that IT risk management is driving value for the organization:
- Nearly half (49%) 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%) have a perception that IT risk management impacts time to market, challenging the notion that ITRM adds value to the organization.
About the Report
KPMG LLP, in collaboration with Forbes Research, conducted a telephone survey of 200 senior executives responsible for IT risk management at large U.S. companies across the financial services, technology, healthcare and life sciences, and industrial manufacturing Industries.
About KPMG LLP
KPMG is one of the world's leading professional services firms, providing innovative business solutions and audit, tax, and advisory services to many of the world's largest and most prestigious organizations.
Suggested Items
The Right Approach: I Hear the Train A Comin'
04/25/2024 | Steve Williams -- Column: The Right ApproachTraining is often an afterthought in many organizations, and the longer a company has been in business, the more this seems to apply. Over the past couple of decades, it has been amazing to observe that the biggest offenders of this are the companies that overuse the sound bite, “Our most important assets are our people.” When you dig into the process and peel back the onion, their commitment to training is not commensurate with that statement.
Record Numbers of Exhibitors to Showcase Products and Services at EWPTE 2024
04/25/2024 | IPCWHMA/IPC announces that 215 exhibitors spanning over 50,000 nsf of exhibit space will introduce new product technologies, innovations and demonstrations of the electrical wire harness, wire, coil winding and cable processing industries’ newest advancements at Electrical Wire Processing Technology Expo (EWPTE) to be held at Baird Center May 14-16, 2024, in Milwaukee, Wis. This marks the largest number of exhibiting companies in the event’s history. More than 3,000 attendees are expected to attend this year’s event.
Fujitsu, METRON Collaborate to Drive ESG Success
04/24/2024 | JCN NewswireFujitsu Limited and METRON SAS, a French cleantech company specializing in energy management solutions for industrial decarbonization, today announced a strategic initiative to contribute to the realization of carbon neutrality in the manufacturing industry.
GlobalFoundries Commits to Achieving Net Zero Emissions and Carbon-Neutral Power by 2050
04/23/2024 | GlobalFoundriesGlobalFoundries (GF) is furthering its commitment to sustainable operations and fighting climate change with the announcement of two new long-term goals to achieve net-zero greenhouse gas (GHG) emissions and 100% carbon-neutral power by 2050.
NEC Strengthens Commitment to Space Industry with Investment in Seraphim Space Venture Fund II
04/22/2024 | JCN NewswireNEC Corporation announced a strategic investment in "Seraphim Space Venture Fund II," a pioneering venture capital fund specializing in the space industry and operated by Seraphim Space, the most prolific investor globally in this domain.