Financial risk rises to top of agenda

Financial risk has risen to the top of the risk agenda, overtaking cyber and operational risk, reflecting changed priorities against a gloomy economic backdrop.

This is among the findings of Origami Risk's second annual State of Risk report, which shows that risk managers are increasingly investigating ways to address the emergence of more complex and interconnected risks.

This year's report also suggests that the gap between risk management leaders and laggards is widening, with leaders maturing rapidly and laggards falling further behind as they lack the investment, or stakeholder buy-in, to improve their own programmes, one of the biggest differenatiators in this respect being technology.

Based on the responses to a survey conducted in November 2022, the report finds that a majority of risk and safety managers (62%) are planning to connect their existing risk data across different systems, a significant shift from the year prior (47%).

Interviews conducted for the report confirmed that the push to connect more data was being done in an effort to better manage increasingly complex risk in a dynamic risk landscape that can no longer be adequately addressed using siloed approaches.

Commenting on the findings, Earne Bentley (pictured), president, risk at Origami Risk said: "A more complex, interconnected risk landscape requires that all functions dealing with risk ‘level up’ to meet rapidly emerging and evolving challenges. To do this, risk managers must invest in ever more sophisticated, real-time analysis and insight, as well as data connectivity that gives them a holistic view of their organisational risks. Standing still is no longer an option.”

Despite making recent headlines, investment in artificial intelligence and machine learning were not cited as a priority by two-thirds of respondents.

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