Nearly three-quarters (72 per cent) of chief technology officers (CTOs) believe that risks of the future will be different from the risks in the business environment today, compared to only 47 per cent of chief executives (CEOs), managing directors (MDs) and directors, according to a report by Bloomberg Professional Services.
The survey titled ‘In Flux: Navigating India’s Changing Risk Landscape’ stated that 48 per cent of respondents identify data-related risks as a top concern, signalling a new era where data holds tremendous power and potential pitfalls.
About 91 per cent of the respondents claim it is easier to identify and manage traditional risk compared to newer forms of risk. More than half of the respondents (52 per cent) revealed that today’s risk parameters are different as compared to the past, it added.
On the transformation of risk parameters, CTOs seem to be most sensitive to the changing risk parameters. More than two-thirds of CTOs (68 per cent) admitted that risk parameters in their business environment from a decade ago are ‘significantly different’ from those of today’s generation.
This in contrast, less than half (44 per cent) of CFOs feel the same, according to the survey.
Across all sectors, decision-makers were more concerned by the risks categorised in this study as non-linear risks. However, the responses also triangulated a broader concern about the changing nature of risk itself.
Significantly, the data illustrates that nearly one in five respondents (19 per cent) believe that they currently have insufficient data to mitigate risks during the coming decade.
Notably, decision-makers across all sectors anticipate that the risks they are most concerned about will continue to evolve over time, and the parameters affecting their businesses in the future are likely to be different.
In this respect, many business leaders expect change to be the solitary constant, it added.
Market and economic risks maintain an imposing lead as a top priority for business leaders both a decade ago and today, however, secondary risks have fluctuated significantly.
For instance, environmental risk has increased 3.00 points on the decision-maker’s list of priorities, a higher increase than any other type of risk. Out of a group of eight risks, environmental risks were ranked sixth in importance a decade ago, but today rank as the third most important risk factor.
In contrast, operational risk has dropped 3.00 points in the list of priorities. A decade ago 14 per cent considered operational risk the top priority affecting their sector, in the present day, the proportion has reduced to 11 per cent.
In ranking terms, operational risk has declined from the perceived second most important risk a decade ago to the fifth today.