5 Risk Management Trends to Watch in 2023

5 Risk Management Trends to Watch in 2023

The past year has seen some major changes in the risk management landscape. From new regulations to emergent technologies, there are a number of trends that are set to shape the field in the coming year and beyond. Here are five risk management trends to watch in 2023:

1. The continued rise of data privacy concerns and regulations

Data privacy has become a major risk for businesses in the modern world. With an increased focus on keeping user data safe, along with rapidly changing regulations from across the globe, it is more important than ever to be aware of how your business is interacting with customer data. It’s essential to understand the relevant laws and best practices for data privacy and be able to adjust your risk management protocols accordingly in order to remain compliant. By doing so, you can ensure that you’re taking all necessary precautions to protect your customers’ data and maintain strong risk control initiatives.

2. The increasing importance of cybersecurity insurance

2023 is expected to bring big shifts in the world of cybersecurity, with statistics predicting a continuing increase in the number of cyber attacks pushed by malicious actors. As such, there has been an increased focus on the role of cybersecurity insurance to limit and prevent the damages that result from these attacks. Regulations are increasingly requiring companies to invest in cybersecurity insurance, while best practice is suggesting that organizations get ahead of this trend by implementing coverage as soon as possible. Ultimately, it pays for companies to stay informed about why this type of insurance is becoming so important. The view is that being proactive now could end up saving organizations lots of money into 2023 and beyond.

3. The rise of AI in governance, risk and compliance (GRC) technology

GRC technology is rapidly growing in sophistication, as automation is increasingly incorporated into GRC strategies and approaches. Automation has enabled GRC professionals to save time and energy in their efforts to maximize compliance with laws and regulations. Real-time analysis of GRC data and automated reporting capabilities increase the accuracy of GRC programs, offer greater operational efficiencies, reduce associated costs and risks, and provide stronger alignment with stakeholder expectations. By embracing automation in GRC technology, companies can ensure that their GRC processes meet regulatory requirements while remaining compliant with ethical corporate governance guidelines.

4. The changing nature of work

As technology advances, and with challenging environments caused by pandemics, international conflict and economic crises, the nature of work is undergoing radical changes. A focus on resilience and agility within risk management has provided greater security and an ability to ‘bounce back’, while allowing companies to operate with increased flexibility. Technology also enables us to switch jobs more quickly and take on projects that would have previously been unfeasible due to meeting strict requirements. With these new opportunities also come potential challenges – as risk management strategies must be up to date in order to account for any sudden changes in a business environment. Companies must stay diligent in monitoring risk levels and adapting their strategies as needed, so that they remain well-equipped for the ever-evolving challenges brought about by the changing nature of work.

5. The shift towards proactive risk management strategies

Proactive risk mitigation strategies place emphasis on preventive measures and aim to reduce potential risks before they occur through careful decision-making, accurate planning, and effective communication. This shift to pre-emptive risk management strategies (such as ‘Secure by Design‘) is designed to comply with industry norms as well as protect the assets of stakeholders such as customers, shareholders and employees. As modern organizations broaden in scope, compliance with security and privacy regulations has become essential for mitigating risks that could lead to major financial losses or other issues. Proactive strategies provide a systematic way for organizations to protect themselves against potential threats.

The world is changing rapidly, and it can be hard to keep up. These are just a few risk management trends to watch in 2023 – but at Acuity, we regularly update our expertise and offering to ensure we provide our customers with the knowledge and support to better manage ever-changing risks.

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