Cybersecurity and Technology: The Twin Titans of Modern Business Risk
February 20, 2025, 10:50 pm
In the ever-evolving landscape of business, two giants loom large: cybersecurity and technology investment. Both are critical, yet they present unique challenges. As organizations navigate this complex terrain, understanding the interplay between these elements is essential for survival and growth.
Cybersecurity has emerged as the top risk for banks, a sentiment echoed across industries. A recent survey by EY and the Institute of International Finance (IIF) underscores this reality. For the third consecutive year, cybersecurity reigns supreme as the primary concern for Chief Risk Officers (CROs). It’s a digital fortress under siege, with 75% of CROs identifying it as the chief risk over the next year. The stakes are high. A breach can shatter trust and cripple operations.
But cybersecurity is not alone in the spotlight. Geopolitical risks are gaining traction, reflecting a world in turmoil. The survey reveals a sharp increase in concern, with 38% of CROs ranking it among their top five priorities. This shift is not just a statistic; it’s a wake-up call. As political landscapes shift, so too do the risks that businesses face. The interconnectedness of global events means that a crisis in one region can ripple across the globe, affecting banks and enterprises alike.
Operational resilience is another rising star in the risk hierarchy. With 38% of CROs prioritizing it, organizations are realizing that the ability to withstand shocks is paramount. It’s not just about preventing breaches; it’s about being prepared when they occur. The mantra is clear: expect the unexpected.
Yet, as businesses grapple with these risks, they are also investing heavily in technology. A separate EY report highlights a robust commitment to emerging technologies. Nearly half of the surveyed organizations are pouring resources into generative AI, IoT, and 5G. The ambition is palpable. But there’s a catch. Many firms remain stuck in pilot mode, unable to transition from trials to full-scale deployments. This stagnation is a ticking clock, threatening to undermine the potential benefits of these investments.
The disconnect between investment and implementation is striking. While organizations are eager to embrace new technologies, they often lack the clarity needed to make informed decisions. A staggering 73% of firms express a need for better understanding of the supplier landscape. This confusion can lead to frustration and ultimately to a consolidation of suppliers. Businesses are looking for partners who can deliver measurable outcomes, not just flashy promises.
The challenge is compounded by budget constraints. As CROs expand their responsibilities, they face the dual pressure of managing risks while also innovating. A significant 41% of CROs cite limited budgets as a barrier to operationalizing AI. The irony is palpable: the very technologies designed to enhance efficiency are often stymied by financial limitations.
Talent is another critical piece of the puzzle. The demand for cybersecurity skills is soaring, with 47% of CROs identifying it as the most in-demand skill set. Yet, attracting and retaining this talent is a formidable challenge. More than half of CROs report difficulties in securing the right expertise. The talent war is fierce, and organizations must cultivate a pipeline of skilled professionals to navigate the complexities of modern risk management.
As the regulatory landscape shifts, businesses must remain vigilant. The aftermath of the 2024 election super-cycle has left a fragmented regulatory environment. Almost two-thirds of CROs in North America cite changes in the regulatory agenda as a top concern. This uncertainty can stifle innovation and complicate compliance efforts. Organizations must be agile, ready to adapt to new regulations as they emerge.
In this intricate web of risks and opportunities, the role of the CRO is evolving. Once seen as a guardian of compliance, they are now becoming strategic leaders. The vision is clear: CROs must act as watchtowers, overseeing intersecting risks and ensuring that organizations remain resilient in the face of adversity.
The road ahead is fraught with challenges, but it is also ripe with opportunity. Organizations that can successfully integrate technology into their risk management strategies will emerge stronger. The key lies in collaboration. Businesses must forge partnerships with technology providers who can deliver holistic solutions, not just isolated products.
In conclusion, the twin titans of cybersecurity and technology investment are reshaping the business landscape. As organizations confront these challenges, they must adopt a proactive approach. Embracing innovation while managing risks is not just a strategy; it’s a necessity. The future belongs to those who can navigate this complex terrain with agility and foresight. The stakes are high, but so are the rewards. In this game of risk and opportunity, only the most adaptable will thrive.
Cybersecurity has emerged as the top risk for banks, a sentiment echoed across industries. A recent survey by EY and the Institute of International Finance (IIF) underscores this reality. For the third consecutive year, cybersecurity reigns supreme as the primary concern for Chief Risk Officers (CROs). It’s a digital fortress under siege, with 75% of CROs identifying it as the chief risk over the next year. The stakes are high. A breach can shatter trust and cripple operations.
But cybersecurity is not alone in the spotlight. Geopolitical risks are gaining traction, reflecting a world in turmoil. The survey reveals a sharp increase in concern, with 38% of CROs ranking it among their top five priorities. This shift is not just a statistic; it’s a wake-up call. As political landscapes shift, so too do the risks that businesses face. The interconnectedness of global events means that a crisis in one region can ripple across the globe, affecting banks and enterprises alike.
Operational resilience is another rising star in the risk hierarchy. With 38% of CROs prioritizing it, organizations are realizing that the ability to withstand shocks is paramount. It’s not just about preventing breaches; it’s about being prepared when they occur. The mantra is clear: expect the unexpected.
Yet, as businesses grapple with these risks, they are also investing heavily in technology. A separate EY report highlights a robust commitment to emerging technologies. Nearly half of the surveyed organizations are pouring resources into generative AI, IoT, and 5G. The ambition is palpable. But there’s a catch. Many firms remain stuck in pilot mode, unable to transition from trials to full-scale deployments. This stagnation is a ticking clock, threatening to undermine the potential benefits of these investments.
The disconnect between investment and implementation is striking. While organizations are eager to embrace new technologies, they often lack the clarity needed to make informed decisions. A staggering 73% of firms express a need for better understanding of the supplier landscape. This confusion can lead to frustration and ultimately to a consolidation of suppliers. Businesses are looking for partners who can deliver measurable outcomes, not just flashy promises.
The challenge is compounded by budget constraints. As CROs expand their responsibilities, they face the dual pressure of managing risks while also innovating. A significant 41% of CROs cite limited budgets as a barrier to operationalizing AI. The irony is palpable: the very technologies designed to enhance efficiency are often stymied by financial limitations.
Talent is another critical piece of the puzzle. The demand for cybersecurity skills is soaring, with 47% of CROs identifying it as the most in-demand skill set. Yet, attracting and retaining this talent is a formidable challenge. More than half of CROs report difficulties in securing the right expertise. The talent war is fierce, and organizations must cultivate a pipeline of skilled professionals to navigate the complexities of modern risk management.
As the regulatory landscape shifts, businesses must remain vigilant. The aftermath of the 2024 election super-cycle has left a fragmented regulatory environment. Almost two-thirds of CROs in North America cite changes in the regulatory agenda as a top concern. This uncertainty can stifle innovation and complicate compliance efforts. Organizations must be agile, ready to adapt to new regulations as they emerge.
In this intricate web of risks and opportunities, the role of the CRO is evolving. Once seen as a guardian of compliance, they are now becoming strategic leaders. The vision is clear: CROs must act as watchtowers, overseeing intersecting risks and ensuring that organizations remain resilient in the face of adversity.
The road ahead is fraught with challenges, but it is also ripe with opportunity. Organizations that can successfully integrate technology into their risk management strategies will emerge stronger. The key lies in collaboration. Businesses must forge partnerships with technology providers who can deliver holistic solutions, not just isolated products.
In conclusion, the twin titans of cybersecurity and technology investment are reshaping the business landscape. As organizations confront these challenges, they must adopt a proactive approach. Embracing innovation while managing risks is not just a strategy; it’s a necessity. The future belongs to those who can navigate this complex terrain with agility and foresight. The stakes are high, but so are the rewards. In this game of risk and opportunity, only the most adaptable will thrive.