3 Emerging Data Hazards in Enterprise Risk Management
The concept of enterprise risk demands new attention from finance leaders globally. Complexity, globalization and digitalization are just some of the elements at play in the risk landscape—and data is becoming a core part of understanding and navigating risk.
How do modern finance leaders view, navigate and manage enterprise risk with data? Dun & Bradstreet surveyed global finance leaders across industries and business types. Here are the top three risk trends that emerged from the study:
- The Enterprise Risk & Strategy Disconnect—Finance leaders are using data and managing risk programs, but over 65% of finance leaders say there’s missing link between risk and strategy.
- The Risks of the Use and Misuse of Data—Up to 50% of the data used to manage modern risk is disconnected. Only 15% of leaders are confident about the quality of their data.
- Risky Relationships—Only 20% of finance leaders say the data they use to manage risk is fully integrated and shared.
Even when data is available to help prioritize and understand enterprise risk, companies are struggling with the magnitude and disparity of the data they manage each day.
In spite of the growing complexity of enterprise risk, most finance leaders are taking proactive steps to integrate data into their decision frameworks and to formalize their risk management processes internally. These modern finance leaders know that data is important, yet they also struggle with the nebulousness of emerging risks and the added unknowns of human behavior.