Digital Risk Is the Primary Business Concern

Respondents to a newly-released global survey by FTI Consulting see an inextricable link between data and business success, and view digital risk as a greater concern than other business risks. Respondents’ titles included chief legal officer, general counsel, and chief risk, information, security, compliance and data officers. More than two-thirds of respondents ranked data privacy as one of their top three concerns.

Other risk areas that ranked as a top-three issue included information security, data quality, and regulatory compliance and inquiries. Forty-one percent said that data is being shared on devices and through systems that are not sanctioned within their organization’s policies. Two-thirds of chief legal, compliance and risk respondents plan to invest in technology to address risks from emerging data sources.

More than 90 percent of data privacy professionals contacted for the survey had experienced increased data-related risk due to hybrid work environments, and 77 percent said that data breaches have become more expensive in the last year. About the same percentage said they’d experienced a significant or moderate increase in regulatory activity over the past year.

Most respondents admitted that they are not taking serious steps to prepare for the risks associated with blockchain and digital assets. Only one-quarter claimed to have a fully proactive approach to monitoring compliance risks. However, three-quarters of risk and compliance professionals surveyed are using AI to conduct compliance monitoring, IP remediation and other risk management activities.