Key Risk Management Statistics and Insights for 2024

Now more than ever, risk management stands as an indispensable pillar for organisational stability and growth. The year 2024 has witnessed significant shifts in this domain, necessitating a fresh examination of its dynamics.

Here, we will delve into the latest statistics and insights in risk management, offering a comprehensive overview of current trends and future projections across five overarching themes:

• Market Size and Growth of Risk Management
• Environmental and Geopolitical Risks
• Cybersecurity and Technology Risks
• Organisational and Economic Challenges
• The Future of Risks: Now and 2034

Global Risk Scenarios 2024

Economist Intelligence Unit (EIU) forecasts 10 critical global risk scenarios in 2024, including:

• Political risks: New US administration shifts foreign policy straining alliances; AI undermines trust in political institutions; Industrial action disrupts global productivity
• Military risks: War in Ukraine turns into global conflict; The Israel-Hamas war escalates into a regional conflict; China annexes Taiwan
• Economic risks: High interest rates lead to global recession; Green subsidies spur global trade war; China increases state controls
• Environmental risks: Climate change disrupts global supply chains

Market Size and Growth of Risk Management

• The global risk management market size is expected to reach USD 35.9 Billion by 2032, exhibiting a growth rate (CAGR) of 13% during 2024-2032. (IMARC Group)
• The risk management software market was valued at USD 31.33 billion in 2021 and is expected to reach the value of USD 35.01 billion by 2029, at a CAGR of 9.75% during the forecast period. (Data Bridge Market Research)

Environmental and Geopolitical Risks

• At 72%, extreme weather events are the top perceived risk that risk professionals report will have a significant impact on their business and/or their people in the next 12 months. This is followed by natural disasters (62%) and new pandemics (56). (International SOS)
• 74% of risk professionals believe geopolitical tensions will seriously impact their people or operations in the next 12 months. What's more, 38% believe their organisation is not equipped to respond to or mitigate effects of social or civil unrest. (International SOS)

• 66% of World Economic Forum's Global Risks Perception Survey (GRPS) respondents rank extreme weather as the top risk most likely to present a material crisis on a global scale in 2024. This is followed by AI-generated misinformation and disinformation (53%) and societal and/or political polarisation. (World Economic Forum)

Cybersecurity and Technology Risks

• As artificial intelligence (AI) adds a new set of topographical features to the disinformation landscape, around half of risk professionals say they have been exposed to disinformation about health and security issues in their work. (International SOS)
• 2 in 5 risk professionals say they have considered the potential impact of AI developments on their workforce's health, well-being, and security. (International SOS)

• 60% of risk professionals say they believe political misinformation/disinformation could seriously affect operations or employees in the next 12 months. (International SOS)
• 40% of executives cite cyber attacks as a serious risk (PwC Pulse Survey)
• 79% of business leaders are revising/enhancing their cyber risk management. (PwC Pulse Survey)

• 49% of business leaders are increasing investments in cybersecurity and privacy. (PwC Pulse Survey)
• Health executives see cyber attacks (43%), supply chain disruptions (41%), and tax policy (41%) as top business risks. (PwC Pulse Survey)
• The average annual cost of an insider risk is USD 16.2 million. (DTEX)
• Organisations that took more than 91 days to respond to an insider incident had costs exceeding USD 18.3 million. (DTEX)
• 77% of organisations have started or are planning to start an insider risk management. (DTEX)

• 9 in 10 executives identify "cyber threats" as a long-term Top 5 risk. (Protiviti)

Organisational and Economic Challenges

• 52% of risk leaders say an increase in new regulations is a top scenario in their 2-year resilience plans. (PwC)
• 55% of risk leaders are investing in building better crisis management plans. (PwC)
• 63% of business leaders are changing processes to address labour shortages. (PwC Pulse Survey)
• 58% of leaders flag "economic conditions" as a top risk in 2024. (Protiviti)
• 61% of leaders identify "attracting and retaining talent" as a top risk in 2034. (Protiviti)

The Future of Risks: Now and 2034

As risk management involves forward-looking strategies and proactive measures to protect a business, part of this process often includes considering various forecasts that can impact the business environment.

We found some really interesting lists of top risks in 2024 and 2034 that Protiviti recently published. And here's what we think:

• Cyber threats remain a top concern in both 2024 and 2034. This indicates an ongoing struggle with cybersecurity challenges, likely driven by the continuous evolution of technology and the increasing sophistication of cyber attacks.
• The need to attract, develop, and retain top talent – while managing shifts in labour expectations – appears to be a consistent issue across the decade. This reflects the enduring importance of human capital in business success and the evolving expectations and needs of the workforce.
• The adoption of digital technologies requiring new skills appears in both 2024 and 2034, suggesting a long-term challenge in bridging the skills gap. This could point to the rapid pace of technological advancements outstripping the ability of the workforce to adapt.
• The challenge of existing operations and legacy IT infrastructure remaining competitive appears in both lists, pointing to a long-term issue with keeping up-to-date with technological advancements and the continuous pressure from "born digital" competitors.
• In 2034, the rapid speed of disruptive innovations enabled by new and emerging technologies is expected, which is not present in 2024. This anticipation of significant technological breakthroughs and market shifts in the next decade emphasises the need for agility and innovation in business strategies.
• The inability to utilise rigorous data analytics for market intelligence and efficiency appears as a new risk in 2034. This reflects the growing importance of data-driven decision-making and the potential consequences of failing to leverage data analytics effectively.

Safeguarding Your Business With C2 Risk Management Tool

As businesses navigate through a maze of environmental concerns, economic uncertainties, technological advancements, and regulatory changes, understanding the key facets of risk management becomes crucial.

Our Risk Management module combines cutting-edge technology with an intuitive user experience to provide a complete solution to your risk needs. The risk framework is completely configurable to your organisation's requirements. Through administration, you can create custom risk types, risk categories, and risk treatments. When it comes to measuring/scoring your risk, you can also set custom impact and probability levels (applying your own weighting) and your very own formula for scoring risks. Our system also allows you to build in on-screen help to aid users with their assessments, making the risk assessment process extremely simple.

The system allows you to attribute risks to any part of your organisation and view your risks at any level, with all risks being aggregated into a company-wide register. Risk registers can be created for any level of your organisation, locations, or by any risk attribute, e.g. by risk category or score.

Our risk module integrates completely with C2 Meridian BCMS, allowing you to raise risks from any other system module, including directly from the Business Impact Analysis (BIA). With smart automation, risks can be automatically raised when certain events breach your risk tolerance, saving you time and reducing human error. All of your risk data is available in our Dynamic Reporting tool, meaning you can create custom risk reports to suit your needs and easily export your risk registers at the click of a button.

For a complete look at what our Risk Management tool can do for your organisation, book a demo today.

Frequently Asked Questions About Risk Management (Risk Management FAQs)

1. What is risk management?

Risk management involves identifying, assessing, and controlling threats to an organisation's capital and earnings. These risks stem from various sources, including but not limited to financial uncertainties, legal liabilities, strategic management errors, accidents, and natural disasters.

2. Why is risk management important?

Risk management is crucial as it helps organisations understand, manage, and mitigate risks, ensuring stability and profitability. It prevents losses, enhances decision-making, and supports compliance with laws and regulations.

3. What is a risk management plan?

A risk management plan is a document that details an organisation's strategy for identifying and addressing potential risks to minimise their impact on operations.

4. What is third-party risk management?

Third-party risk management involves identifying and managing risks associated with external entities, like vendors or partners, that a company interacts with. This ensures the third parties' actions do not adversely affect the company.

5. What is risk treatment?

Risk treatment involves selecting and implementing measures to modify risk. This includes risk avoidance, reduction, sharing, and retention strategies to manage and mitigate the potential impacts of identified risks.