Enterprise Risk Management Forecasts and Trends for the Next Decade

Enterprise Security Magazine | Tuesday, January 18, 2022

The good news is that suppliers throughout the industry are increasingly aware of the importance of verification and are beginning to implement processes and systems to address the problem.

FREMONT, CA: In 2021, the epidemic handed corporate managers all sorts of unanticipated curveballs. The escalating scenario called into question the precision of CEO forecasts, the assumptions of corporate risk managers, and the extent of company readiness for unforeseen events.

These factors have contributed to the current emphasis on evaluating and managing organizational risk, which is anticipated to continue and intensify over the next year.

The coming year will usher in several corporate changes, expansions, and opportunities. Here are some themes that business risk managers will likely be particularly interested in 2022.

Cybersecurity Is the Focus of Considerable Attention

During the pandemic, cyber attack-related economic losses surged. Awareness of cyber risk increased demand for cyber insurance to such an extent that a recent analysis by S&P Global Ratings predicts that insurance costs will climb dramatically in 2022. Still, in some circumstances, they will even double.

Research from International Data Corporation (IDC) indicates that security and compliance are currently the most critical factors companies use to determine whether they will trust potential vendors and other third-party partners ahead of privacy, sustainability, and diversity.

Increased Compliance

Risk managers' compliance objectives and the areas they must devote time and money will be affected by upcoming regulatory changes, compliance deadlines, and federal agendas, mainly as the government invests enormous new sums in infrastructure.

In the coming months, new regulations for cybersecurity standards will likely be expedited, first in the form of executive orders to government suppliers and then through expanding regulations to other regulated industries by more specialized government agencies.

Companies will take steps to avoid the newly outlined risks of noncompliance in cybersecurity due to judicial judgments and penalties such as government fines. This will establish a new cybersecurity baseline that many businesses will need to meet. The level of security required for mere compliance will be closer to the very particular requirement.

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