Cyber security seen as biggest threat to business in Sword GRC’s Annual Survey of Risk Managers

Sword GRC, the supplier of specialist risk management software and services, has published the latest findings from its Annual Survey of Global Risk Managers. Almost 150 risk managers from highly risk-aware organisations worldwide were canvassed for their opinions. Overall, cyber security was seen as the biggest risk to business by a quarter of organisations.

In the UK, Brexit and the resulting potential economic fall-out was cited as the biggest risk to business by 14% of risk managers. The most notable regional variation was in the US where 40% of organisations see cyber security as the most threatening risk.

The most lucrative opportunities for business were the benefits and efficiencies achieved by harnessing technology followed by expansion into new markets or sectors.

The risk managers involved were also asked about their acknowledgement and preparations for ‘Black Swan’* (an event that’s highly unlikely to materialise but, if it did, would have a substantial impact). In both the US and the UK, a major terrorist attack on the business is seen as the most likely ‘Black Swan’ (UK 29%, US 35%). However, in Australia/New Zealand, only 13% of risk managers thought that one was likely.

The next most likely ‘Black Swan’ in the US is a natural disaster, with 48% of risk managers thinking it was likely or highly likely. This figure was 33% in Australia and New Zealand, and in the UK, where there are fewer adverse weather events and no major fault lines in the earth’s crust, this figure was just 27%.

In the UK, risk managers were far more wary of Artificial Intelligence (AI), with 23% thinking it likely or highly likely that AI could go out of control. In the US, this figure was 15%, while in Australia/New Zealand risk professionals clearly take a far more sanguine view with no-one surveyed thinking AI was a risk.

Record number of responses

Keith Ricketts, vice-president of marketing at Sword GRC, commented: “We’re delighted to see the Active Risk Annual Survey of Global Risk Managers going from strength to strength with a record number of responses in 2018.  As risk continues to grow in terms of its importance and influence in the Boardroom, we have this year focused on the biggest threats and most lucrative opportunities facing business. That cyber security is now recognised as the single biggest risk for many organisations is no surprise to us, as it supports the anecdotal evidence we’ve seen from working with our clients in some of the most risk-aware industries globally.”

Ricketts added: “Technology is a great enabler and that has never been more true. The feedback we’ve received from risk managers is that IT is the key to almost every opportunity for business going forward, whether that’s supporting expansion into new markets and geographies, streamlining processes to gain efficiency or harnessing Big Data and AI to power product development and business performance.”

*Black Swan: In traditional enterprise risk methodologies, the assessment of this type of risk using a ‘likelihood x impact’ rating would potentially exclude it from the category of risk in risk appetite terms that ‘must be mitigated’. This could mean that organisations fail to plan for a scenario whereby the absolute worst were to happen

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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