Half of firms lack operational agility, risk survey finds
A worrying number of companies feel unable to find the opportunities in today’s risk environment because they lack operational agility, according to recently published research.
The second instalment of the corporate risk radar report by law firm Clyde &Co found that less than half (48%) of surveyed companies feel able to quickly adapt their core strategy when conditions change, while just over a third (37%) have the capacity to rapidly modify their operating processes and structure.
The findings are all the more concerning given that agility was widely recognised by respondents as a strategic imperative.
The lack of agility is even more striking when it comes to tech, with less than a quarter (22%) of companies able to swiftly implement new technology initiatives.
Furthermore, the survey found that more than three-quarters (76%) of respondents are concerned that generative AI has amplified the perception of cyber risk, while over a third (34%) feel unprepared for the disruption caused by the adoption of AI.
The survey did reveal more preparedness for geopolitical activity, which was identified as the fastest-growing ‘high impact’ risk in 2024. In response, businesses are strengthening their supply chain resilience and embracing nearshoring as a way to relocate their businesses.
According to Clyde & Co, companies must address the apparent ‘agility deficit’, especially when it comes to remote workers and technology.
“With hybrid working and the reliance on remote technology, a significant proportion of cyber incidents are caused by human behaviour and misjudgements,” said Helen Bourne, partner, Clyde & Co, London.
“The best way for organisations to counter this and build security and resilience is to train their people well enough to gain sufficient awareness of the likely threats so they can then detect and report them quickly and effectively,” said Bourne.
The survey canvassed 225 global respondents, including board members and CEOs, general counsel and c-suite executives.
