Digital technology is disrupting business models across industries, creating advantages for companies in areas such as customer experience, revenue generation and cost reduction. It has become a key driver of growth for many organisations, changing the way companies operate.

Digital transformation allows companies to streamline their operations and strengthen their customer relationships. It can impact many different facets, from sales and marketing, to research and development, to supply chain management. As companies continue to develop and adopt new technologies and operating models, momentum around the digital revolution will continue to build. For many businesses, digital transformation is no longer optional, but necessary.

The impact of digital transformation can also be seen in the risk and compliance (R&C) function.

Companies are using technology solutions to complement existing policies and procedures, and to support and improve processes. In an increasingly regulated landscape, companies cannot afford to neglect their R&C obligations. Stakeholders today expect companies to prioritise compliance. In response, companies are empowering and better equipping their risk management professionals. And one of the most important tools at the disposal of the risk function today is technology.

According to ‘Managing Risk Through Digital Transformation’, a report by 451 Research, many organisations express concern about risk-related issues and demonstrate a willingness to consider mitigation strategies. However, senior management are finding it difficult to transmit to their employees that risk management should be seen as a core component of the digital transformation process. Nevertheless, organisations need to accelerate their efforts in this area.

Jan-Mar 2019 Issue

Richard Summerfield