IT Risk Management Statistics


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IT Risk Management Statistics 2023: Facts about IT Risk Management outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on IT Risk Management, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will IT Risk Management Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

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Top IT Risk Management Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 51 It Risk Management Statistics on this page 🙂

It Risk Management “Latest” Statistics

  • Knowing what sensitive information is included in the third-party systems that their staff are utilizing is unknown to 22% of respondents.[1]
  • Most IT organizations questioned by Hyperproof in December 2020 said that their company only handles IT risk in an ad-hoc manner when a bad event occurs, 35% of the largest groupings.[1]
  • To screen their third parties, 40% of firms use manual methods like spreadsheets, and 51% utilize risk scanning technologies; however, 34% stated these tools are only somewhat effective, and 20% claimed the findings don’t provide any insights.[1]
  • Because of a lack of data, 41% of respondents find it difficult to continuously monitor their third parties.[1]
  • 44% of respondents acknowledge they could do better at recognizing the controls already in place to manage certain risks.[1]
  • 51% of respondents said it takes a lot of time and effort to manually gather risk data on third parties.[1]
  • 71% of it businesses polled by Hyperproof in December 2020 said that their business regularly performs risk assessments.[1]
  • According to a 2018 Ponemon Institute research, 57% of respondents were unaware that their companies’ vendor controls were enough to avoid a data breach.[1]
  • Half of all respondents said that low-level administrative chores take up 50% or more of their whole workday.[1]
  • And just 34% of respondents even possessed an exhaustive list of all the third parties that had access to their data.[1]
  • By the end of 2020, only 25% of firms were incurring extra fees to resolve malware attacks and cybersecurity breaches because of their inability to facilitate remote work without exposing sensitive information.[1]
  • 45% of respondents said they use software designed expressly for overseeing IT compliance initiatives.[1]
  • A federal data privacy and security regulation may be passed in the U.S. in the next years, and 86% of U.S. respondents have planned for this in their 2021 IT compliance budget.[1]
  • Coalfire and Omdia Research conducted a joint study in 2020 and discovered that mounting compliance requirements pose a danger of becoming unmanageable financial burdens. 51% of those polled said compliance accounts for 40% or more of their IT security costs.[1]
  • Only 24% of respondents said that their companies work with outside parties to enhance their security procedures.[1]
  • Businesses are not receiving insights less than 8% of evaluations lead to action, according to 54% of respondents.[1]
  • 70% think that the cost of failing is $13,000,000 costs include the effect on brand and reputation, a decline in share value, business loss, etc.[1]
  • There is still a lack of visibility into the genuine risk profile of third parties. In order to get comprehensive, reliable risk information on their suppliers, 55% of respondents felt challenged.[1]
  • Instead of developing or advanced policy management systems, 65% of firms are using reactive or basic policy management programs.[2]
  • 44% of businesses want to update or increase their current use of GRC or risk management software.[2]
  • 56% of businesses do not have a defined procedure for evaluating third parties’ BC preparedness.[2]
  • Occupational safety (29%), differentiation because of competition (29%), and reputation and branding (29%) were the most significant consequences of critical risk event.[2]
  • ERM programs by firms showed collaboration between the risk management function and business units is 66% of their priorities. Managing rising regulatory expectations and needs (61%) and creating and implementing a risk culture throughout the organization (55%).[2]
  • Over 50% maintain their business continuity strategies or 51.75% of firms employ internal or ad hoc tools and techniques such as spreadsheets and documentation.[2]
  • According to COBIT maturity level standards, only 27% of firms rate their BC program maturity as a 4 or 5 measured or optimized out of 5.[2]
  • 40% of firms now use specialized business continuity planning software, which is crucial for complex organizations, especially those with few employees and given the rising significance of BC to corporate operations and strategy.[2]
  • Financial managers’ employment is anticipated to expand by 17% between 2021 and 2031, which is substantially faster than the average for all professions.[3]
  • While major corporations are more likely to make headlines, data by Beazley Breach Response Services indicates small firms were the primary target of 71% of ransomware attacks in 2018.[4]
  • 64% of workers may now work from home, and two-fifths of them do so, according to the 2021 Gartner CIO survey.[5]
  • 78% of CISOs have 16 or more technologies in their cybersecurity vendor portfolio, according to Gartner’s 2020 CISO Effectiveness Survey, while 12% have 46 or more.[5]
  • Over 80% of firms are implementing or considering a plan for vendor consolidation to improve security.[5]
  • More than 75% of knowledge workers expect future hybrid work conditions, making the shift to remote or hybrid work along.[5]
  • 45% of organizations experienced a third-party security incident, yet they are using disparate tools that prolong the response times to incidents.[6]
  • The main goal of TPRM programs is still to reduce the risks associated with dealing with IT providers. Unexpectedly, 40% of respondents to this year’s research said they are focused on controlling vendor risks from both IT and non-IT.[6]
  • The most depressing statistics of all show that 23% of organizations handle third-party incident response passively and 8% of companies have no third-party incident response program in place at all.[6]
  • Data breaches are the main issue for businesses when using third parties, according to 69% of respondents, and 45% of respondents indicated they had a security event in the previous year, up from 21% in 2021.[6]
  • With 32% of respondents noting that it takes more than a month, and in some instances more than 90 days, to provide documentation and evidence required to complete regulatory assessments, these manual procedures add unnecessary complexity and time to third.[6]
  • 45% more businesses than in 2016 reported using spreadsheets to evaluate their third parties.[6]
  • More effort has to be done to automate incident response to mitigate outcomes given that 69% of firms say it’s their priority and that 69% of companies have reported a security problem in the last year.[6]
  • More than 30% of risk executives see seven risk categories as the biggest dangers to the capacity of their companies to expand.[7]
  • When nations recover from catastrophes stronger, quicker, and more broadly, they may lessen the toll on people’s livelihoods and welfare by up to 31%, possibly reducing global average losses.[8]
  • According to the GRID methodology with 96% of its active portfolio embracing climate risk considerations in FY21, GFDRR continues to encourage the integration of climate risks across all activities funded by the facility.[8]
  • According to the GFDRR-funded Lifelines 2019 study, investing in more resilient infrastructure may result in a net benefit of 4.2 trillion in low and middle-income countries, with $4 benefits for every $1 spent.[8]
  • 91% of all fatalities from weather, climate, and water risks occurred in emerging countries between 1970 and 2019.[8]
  • According to the World Bank’s categorization of countries, 82% of fatalities took place in low and lower-middle-income nations.[8]
  • Under CCAP, 35% of WBG finance will contain climate co-benefits, and 50% of climate financing from the World Bank will support resilience and adaptation to assist client countries in fully integrating climate concerns into development initiatives.[8]
  • 72% of respondents said that one or more board committees are to oversee risk at the level of the board of directors, which indicates development in effective governance.[9]
  • Institutions indicated that 87% of their board risk committees are composed of independent directors and that 82% of these committees had one or more designated risk management specialists.[9]
  • Regulators are gradually extending stress testing to cover nonfinancial risks like climate change, although just 38% of banks reported completing stress tests for nonfinancial operations risks.[9]
  • Only 61% of respondents thought their organizations were very or very successful at managing cybersecurity risk, and 87% indicated that over the next two years, expanding their capacity to do so would be an extremely or very high priority.[9]
  • While virtually all respondents assessed their organizations’ effectiveness in managing financial risks as extremely or very successful, the percentage fell to 65% for nonfinancial risk and was significantly lower for certain categories and elements of nonfinancial risk.[9]

Also Read

How Useful is It Risk Management

One of the primary benefits of IT risk management is its ability to proactively identify and mitigate potential threats before they have a chance to manifest into larger problems. By conducting regular risk assessments and vulnerability scans, organizations can gain a better understanding of their IT environment and pinpoint potential weaknesses that could be exploited by malicious actors. This enables them to take swift corrective action to strengthen their security posture and prevent future breaches.

Furthermore, effective IT risk management can help organizations comply with industry regulations and standards, such as the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS). Failure to adhere to these regulations can result in hefty fines, legal repercussions, and reputational damage. By implementing robust IT risk management practices, businesses can ensure that they are operating in accordance with these requirements and maintaining the trust and confidence of their customers and stakeholders.

Another key benefit of IT risk management is its impact on business continuity and resilience. In today’s interconnected world, even a minor IT disruption can have far-reaching consequences, leading to downtime, loss of revenue, and damage to brand reputation. By proactively identifying and addressing potential risks, organizations can minimize the impact of disruptions and maintain operational continuity in the face of unforeseen events.

Moreover, IT risk management plays a vital role in fostering a culture of accountability and responsibility within an organization. By clearly defining roles and responsibilities, establishing clear policies and procedures, and promoting a culture of awareness and vigilance, organizations can empower their employees to take ownership of IT security and actively contribute to the overall risk management effort.

While some may view IT risk management as an unnecessary burden or additional cost, the reality is that the consequences of a data breach or IT outage far outweigh the investment required to implement effective risk management practices. The old adage “prevention is better than cure” holds true in the realm of IT security, where the proactive identification and mitigation of risks can save businesses valuable time, resources, and reputation.

In conclusion, IT risk management is a crucial component of modern business operations, helping organizations navigate the complex and ever-changing landscape of IT security threats. By proactively identifying and mitigating risks, ensuring regulatory compliance, maintaining business continuity, and fostering a culture of accountability, organizations can enhance their resilience, protect their assets, and safeguard their reputation in the digital age.

Reference


  1. hyperproof – https://hyperproof.io/resource/it-risk-and-compliance-statistics-2021/
  2. quantivate – https://quantivate.com/grc-risk-compliance-statistics/
  3. bls – https://www.bls.gov/ooh/management/financial-managers.htm
  4. datto – https://www.datto.com/blog/what-is-data-risk-management
  5. gartner – https://www.gartner.com/smarterwithgartner/gartner-top-security-and-risk-trends-for-2021
  6. prevalent – https://www.prevalent.net/blog/third-party-risk-management-study-2022/
  7. pwc – https://www.pwc.com/us/en/library/pulse-survey/executive-views-2022/risk-management-leaders.html
  8. worldbank – https://www.worldbank.org/en/topic/disasterriskmanagement/overview
  9. deloitte – https://www2.deloitte.com/us/en/insights/industry/financial-services/global-risk-management-survey-financial-services.html

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