Keeping up with digital transformation a challenge for businesses: PwC survey

Nearly eight among ten business executives in India say that keeping up with the speed of digital and other types of transformation is a significant risk management challenge, PwC said in a statement on Tuesday quoting a global risk survey.

Six in ten executives feel the need to actively seek external insights to assess and monitor risks in the increasingly disruptive business environment, PwC said, adding that the survey saw participation from 109 Indian respondents, with leading business executives making up 72% of the sample and the rest comprising risk management, audit and compliance professionals.

This is according to PwC’s 2022 Global Risk Survey: India highlights. The report also reveals that

“Organisational risk management and broader resilience capabilities need to quickly adapt to support business agility and contribute proactive, robust and timely risk insights for decision making. In an environment where change is constant, risk management capabilities provide the greatest value to board members and business leaders when they are embedded within the organisation’s strategic planning and decision-making processes, the statement said quoting Sivarama Krishnan, partner and risk consulting leader, PwC India.

The changing work environment brought on by the pandemic continues to disrupt talent and labour markets, the statement said. Supply shortages, sanctions and rising raw material costs are heightening risks within supply chains, it said.

Customers, investors and other stakeholders are focused on environment, sustainability and governance, including the physical and transition risks that a changing climate poses. Each of these risks can cause significant impacts, but because they are also highly interconnected, any one risk can initiate far-reaching implications across the enterprise and put brand and reputation at stake, PwC said.

Many executives find the need to revise and adapt their strategies and operating models at a rapid pace, it said. PwC said organisations should consider taking a panoramic view of risk, enable risk-based decision making through systems and processes and double down efforts on top risks.

“Any one person cannot manage risks. When it comes to business, risk management is the ultimate team sport,” the statement said quoting Krishnan.