Organizational restructuring, talent shortages, and greater technology risks are some of the key transformation-driven risks for the rest of the year ahead, according to PricewaterhouseCoopers' latest Risk in Review report.
PwC researchers found that more than two-thirds of companies surveyed have under gone major transformations due to these issues over the last 18 months.
Another 10 percent said they plan to make adjustments in the coming 18 to 24 months.
Out of the companies actually responding to these shifts now, the most common strategies have been building new business models, tapping into new digital channels, and expanding into more geographic markets while rethinking how supply chains and the location of their facilities fit into their globalization strategies.
While increasing taxes in industrialized nations and social media risks were cited as some big concerns, another major global economic downturn is still seen as the most serious risk over the next 18 months with nearly two-thirds of PwC’s survey respondents belie such a downturn as being likely.
Published today, PwC's report outlines potential strategies to strengthen risk management techniques by focusing on four strategic response categories: resilience, people, technology and next-generation risk analytics.
Dean Simone, leader of PwC’s U.S. Risk Assurance unit, reflected in the report about some of the suggested techniques that could offer a more proactive approach to handling financial and security risks:
Businesses can use horizon scanning and early-warning systems to spot trends, and employ stress testing to identify key vulnerabilities. More flexible risk appetite statements, corporate-wide contingency planning and a risk-aware corporate culture that challenges conventional wisdom are all powerful tools that can help organizations better manage emerging risks.
For reference, PwC surveyed more than 800 executives and risk managers in businesses worldwide for this study.
The full copy of the Risk in Review report is available to download now.
Chart via PricewaterhouseCoopers