Digital risk continues to grow in importance for corporate boards as they recognize the critical nature of digital business transformation today. In fact, in Gartner’s 2020 Board of Directors survey, 69% of respondents stated they view digital as the top business challenge for 2020 and 2021. Not only that, but 49% of directors cite the need to reduce legal, compliance and reputation risk related to digital investments. For corporate boards, digital risk reduction is the “goal most important to achieve in 2020 with respect to digital business” according to the survey.
That’s why digital risk management has become so critically important for organizations now. How can you gain a better understanding and visibility of digital risk across your business? The only way is through an integrated risk management (IRM) approach using digital risk management technology.
According to Gartner, digital risk management (DRM) technology integrates the management of risk specifically associated with:
- Digital products and services enabled by cloud, mobile, social and big data
- Third-party technology, such as artificial intelligence (AI) and machine learning (ML), operational technology (OT), and the Internet of Things (IoT)
Digital Risk – The Risk that “Lies Within”
Gartner defines cyber risk as “the risk associated with cyber threats emanating from the external cyber environment.” However, digital risk is different. Digital risk is specifically associated with the risks inherent in digital products, services and supporting processes.
No single vendor today provides a comprehensive offering that can provide a full view of the digital risks across social, mobile, big data, cloud and IoT. However, an increasing number of IRM vendors offer key integration points that include cloud access security brokers (CASB), mobile device management, social media surveillance, information governance, model risk management and security ratings services.
During the next 12 to 18 months, most IRM vendors will begin to offer dedicated DRM solutions that provide integration with a wide array of digital risk monitoring subsystems to serve as a true system of record for digital risks. To learn more about DRM technology and other emerging RiskTech trends, please read the following research publications (Gartner subscription required).
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