Organisations said that while sophisticated digital strategies were a must for combating digital threats, 65 per cent reported being in advanced stages of digital risk management maturity, according to a survey by Audit Board. That included actively mitigating and continuously monitoring digital risk.
That figure has increased from 26 per cent in 2023 and can be attributed to several factors. For example, the survey report said that 59 per cent said that their reportable digital risk metrics were very effective – especially during decision making. In addition, those organisations with strong interdepartmental collaboration found their risk metrics and third-party risk management effective. In other words, digital risk maturity enhanced effectiveness in multiple areas.
ERM framework integration
About half (52 per cent) of organisations said they had integrated digital risk management into enterprise risk management (ERM) frameworks. This group also reported more effective metrics, more advanced third-party monitoring, and stronger collaboration between functions that worked together on digital risk.
“Integrating digital risk management into broader enterprise risk management frameworks can significantly enhance digital risk management strategies,” the report said. “This integration ensures alignment across the enterprise, resulting in a more comprehensive and cohesive risk strategy. Strong collaboration across different departments is crucial, as it breaks down silos and fosters a unified approach to managing digital risks.”
Technology can transform
Many organisations said they had benefited from cloud-based solutions to help manage digital risk and had used AI to enhance risk management capabilities significantly – especially in automating responses and improving threat detection. “Over half of the enterprise organisations surveyed use AI to improve team productivity and enhance threat detection to better their digital risk posture,” the report said. “Nearly half say they use it in reporting and automating action and response plans.”
Using AI required balancing its potential risks with rewards. Most (78 per cent) organisations that they had identified and were tracking AI as an emerging technology risk. In addition, implementing a framework for responsible AI use was also seen as critical.
