Talent shortages lead global risk poll
Riskonnect says companies can do more to manage their enterprise risks
Talent shortages and layoffs came out as the leading risk for businesses, followed by recession risk, according to a survey of 300 global risk professionals by risk management solutions firm Riskonnect.
“Many companies can’t find and hold onto the skilled workers they need, which raises considerable risks and threatens the global economy,” Riskonnect said.
It added that 68% of organisations feel they face a higher cybersecurity risk because of skills shortages, while the semi-conductor industry risks 1.4 million jobs going unfilled by 2030.
Although 85% of firms surveyed said their business had been impacted by labour shortages, just 17% of director and c-suite level risk leaders said they were very prepared for a talent shortfall.
Ransomware and cyber security polled as the third-biggest risk driver in the survey, published in research paper The New Generation of Risk. The survey, dominated by US respondents at 72%, found 45% of risk professionals surveyed said they are very prepared to tackle ransomware threats and security breaches.
But Riskonnect warned that new technology, in particular generative AI, could increase the likelihood of a cyberattack, with hackers able to create more personalised and realistic phishing emails to access organisations’ systems.
“AI is behind a more than four-fold increase in account hacking attempts in the first quarter of 2023 compared to all of 2022,” Riskonnect said.
While 93% of companies said they recognise the risks associated with using generative AI, just 9% said they are prepared to manage the threat and only 17% have carried out risk training on using the technology.
“Generative AI is taking off at lightning speed and ushering in a new wave of business risks. Our research shows that most companies have been slow to respond, which creates vulnerabilities across the enterprise,” said Jim Wetekamp, CEO of Riskonnect. “The rise of generative AI is the latest example of how quickly today’s risk landscape evolves. We’ve officially entered a new generation of risk.”
Riskonnect said companies could be doing more to manage the whole spectrum of risk. It found 63% have not simulated their worst-case scenario for natural disasters, cyber and geopolitical risks. Just 5% said they are prepared to assess, manage and recover from a future unknown and unpredictable risk event.
“Organisations have been hit with or witnessed many disruptive events that at their core were known and predictable, and yet robust scenario planning is still not a priority for most. Has your organisation simulated its worst-case scenario? Now is the time,” Riskonnect said.
Riskonnect said risks and disruption over the past few years have started to change how organisations approach enterprise risk management. Some 52% of firms surveyed said they have a chief risk officer, with a further 6% planning to recruit for the role within a year. The majority at 82% said their risk management headcount has increased in the past six months, while 28% reported an increase in budgets for risk management work.
“We are seeing meaningful and positive changes to how companies identify, prioritise and manage risk,” said Wetekamp. “Today’s risk leaders recognise that the threat landscape doesn’t sit still. They are planning for worst-case scenarios, prioritising enterprise-wide visibility, and investing in tools to combat the full and interconnected spectrum of risk.”
