IT Risk Management Statistics

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

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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 🙂

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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 key benefits of risk management is that it helps companies to anticipate and prevent problems before they arise. By identifying potential risks early on, businesses can take proactive measures to mitigate them and reduce their impact. This proactive approach can save both time and money in the long run, as it is often much more expensive to address a problem after it has occurred than to prevent it from happening in the first place.

In addition, risk management ensures that companies comply with regulatory requirements and best practices in their industry. By conducting thorough risk assessments and implementing appropriate controls, organizations can demonstrate to regulators, customers, and other stakeholders that they are committed to managing their operations in a responsible and ethical manner. This can help to build trust and confidence in the organization, which is crucial for long-term success.

Moreover, effective risk management can help companies to seize new opportunities and achieve their strategic objectives. By understanding the potential risks associated with a particular business venture, companies can make informed decisions about whether to pursue it or not. This risk-aware approach allows organizations to make better use of their resources and focus on activities that are more likely to lead to positive outcomes.

While some skeptics may argue that risk management is a time-consuming and costly process, the reality is that the benefits far outweigh the costs. Investing in risk management can prevent major financial losses, such as lawsuits, regulatory fines, or breaches of customer data, which can have a devastating impact on a company’s bottom line. In this sense, risk management can actually save organizations money in the long term by reducing their exposure to potential risks.

Moreover, risk management can also enhance a company’s reputation and credibility in the marketplace. By demonstrating a commitment to risk management, companies can differentiate themselves from their competitors and attract customers who value transparency, integrity, and accountability. In today’s highly competitive business environment, having strong risk management practices in place can be a valuable differentiator that sets companies apart from their peers.

In conclusion, risk management is a critical function that all organizations should prioritize in order to protect themselves from potential threats and capitalize on new opportunities. By proactively identifying and addressing risks, companies can safeguard their operations, enhance their performance, and build trust with stakeholders. While risk management may require an upfront investment of time and resources, the long-term benefits far outweigh the costs. Ultimately, organizations that embrace risk management as a core part of their business strategy will be better positioned to succeed in an increasingly complex and uncertain world.

Reference

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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