KEY OBSERVATIONS The qualitative interviews for OnRisk 2022 provide a snapshot of how the principal drivers of risk management interact, which risks pose the greatest challenges to their organizations, and how alignment on risk management effortsimpactssuccess.nalysisoftheesu r ltsidentifiedsixkeyobservationsthatshedlightnolyihwrsks are understood, but also how the ability to manage risk is perceived. In-depth examinations of these observations are found later in this report.
• There are notable variations among risk management players on certain risks. Overall,thereisgeneral alignmengan tonr izationalcapabi,lity riskelr evance,andpersonalknowledge.However,therearenoteworthy variations in several key risk areas. • Signicantgapsexistbetweenriskrelevanceandorganizationalcapabilityratingsonseveralrisks. The gap between how risk management players rate risk relevance versus organizational capabilities is alarmingly wide for Talent Management, Disruptive Innovation, Data Privacy, Cybersecurity, and Culture. • Risks to pay attention to going forward. Five risk areas emerged as top of mind for respondents: Cybersecurity, TalentManagement,e, Cultr DisruptiveInovation,andEconomicandPolitcalVolat.Of ilty note,fourofthefive also had the largest gaps between risk relevance and organizational capabilities, suggesting risk players know where work needs to be done. • Perceptions of risk relevance vary greatly across ESG components. While alignment among the three groups iselr ativelystongr ontheserisks,OrganizationalGovernanceholdsfargreaterelr evancefoespo r ndentsthando SocialSustainabilityandonmenEvir talSustainabi. lity • ThepandemicrevealedopportunitiestoimproveorganizationalriskCOVI management. D-19maynot h eimprovedtheabilityopredictrisks,butincreasedconfidenceformaneact av yinr ingtorisks.Forthers, it provided a wake-up call on how they manage risk and the added challenges associated with managing risk in decentralized or siloed conditions. • Senior executives and boards desire broader scope for internal audit services. Respondents feel that their current assurance services are adequate but suggest some improvements in assurance reporting. This offers an opportunity to demonstrate the value of independent assurance across a wider spectrum of risks.
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