Last week, I had the distinct privilege to join my Gartner colleagues from our Risk Management Leadership Council in presenting the Q4 2018 Emerging Risk Report. We hosted more than 500 risk leaders across the globe in our exploration of the most critical risks. The Q4 2018 Emerging Risks Survey, designed by Gartner, captures and analyzes senior executives’ opinions on emerging risks and provides actionable insight on identifying and mitigating these risks.
The top rated emerging internal risk is “lagging digitization” and this is the first time it has appeared in our quarterly report. “Lagging digitization” is defined as the risk that slow moving digital business transformation initiatives will cause stagnant growth and an organization to fall behind in their industry. This is becoming of greater concern as more organizations seek to remain competitive as their peers and disruptive start-ups invest in greater digitization. In fact, as we discussed in our call, Gartner’s 2018 CEO Survey discovered that 62% of global CEOs are launching a digital transformation initiative.
To keep pace with the increasing risk associated with digital transformation, organizations require an integrated approach to risk management. Not only is it essential to invest in integrated risk management (IRM) technology to enable this approach, it is also imperative to focus on the convergence of technology and operational risk. This convergence represents a key IRM use case called “digital risk management”.
Digital risk management (DRM) technology integrates the management of risks of digital business components — such as cloud, mobile, social and big data — and third-party technologies, such as artificial intelligence and machine learning, operational technology (OT), and the Internet of Things (IoT). DRM helps bridge the gap between the Chief Risk Officer (CRO), the Chief Information Officer (CIO) and the Chief Information Security Officer (CISO) – see graphic below.
To learn more about how DRM can enable your digital transformation initiative, read my latest research report, Market Insight: Fuel Digital Business Transformation via a Digital Risk Management Solution Stack. You can also learn more about how IRM technology and its wide array of uses on my blog at the Gartner Blog Network.