From AI to cyber – Deconstructing a complex technology risk landscape

With modern technology come modern challenges, especially with regard to navigating the risk landscape, made even trickier by AI and cyber challenges.

Protiviti’s latest internal global survey on Top Technology Risks highlighted the evolving landscape of technology-related challenges that organizations face in this dynamic space. The findings demonstrate that cybersecurity remains the foremost concern, with heightened apprehension about data breaches and ransomware attacks. Notably, organizations that conduct more frequent technology audits and use AI-based tools report a greater awareness of these threats and exhibit higher preparedness levels.

AI has recently emerged as a significant factor in technology auditing. While not currently perceived as a major short-term risk, 59% of respondents anticipate that advanced AI systems will pose substantial risks within the next two to three years. The introduction of AI tools in auditing correlates with increased concern over various threats, including cybersecurity and data privacy and enhances organizational readiness to address these challenges.

Data-related issues, such as privacy, compliance, governance and integrity are prevalent among the top technology risks. This was expressed by over half of the respondents (52%) who identify data breaches and leaks of sensitive information as the most significant cybersecurity-related threats. The trend emphasizes the critical need for robust data management practices to safeguard organizational information.

The survey also reveals that businesses performing a higher number of technology audits annually (six or more) have a clearer understanding of the threat landscape and demonstrate improved preparedness and proficiency in handling these risks. In contrast, those with lower audit frequencies may encounter blind spots in their risk management efforts, highlighting the importance of regular and thorough auditing.

In order to effectively navigate the complex technology risk environment, several recommended actions came out of the survey for technology audit leaders and teams:

• Increasing the frequency of technology audits to maintain a proactive stance against emerging threats.
• Assessing and addressing proficiency gaps within technology audit teams to ensure they possess the necessary skills and knowledge.
• Embracing advanced tools, including AI, in technology auditing to enhance detection and response capabilities.
• Maintaining a strong focus on cybersecurity to protect against evolving digital threats.
• Staying informed about AI developments to anticipate and mitigate associated risks.
• Prioritizing data management to ensure privacy, compliance and integrity.
• Enhancing third-party risk management to address vulnerabilities arising from external partnerships.

By implementing these strategies, organizations can strengthen their defenses against the dynamic and increasingly complex technology risks they face daily.

What it means for SAPinsiders

As organizations increasingly rely on advanced technologies, they face a complex and ever-changing risk environment. Protiviti’s recent global survey on Top Technology Risks sheds light on the primary concerns and strategies for addressing them.

Key Insights:

• Cybersecurity Dominates: Data breaches and ransomware attacks remain the most significant threats, underscoring the need for strong cybersecurity measures.
• AI-Driven Challenges Ahead: While not a major short-term risk, 59% of respondents anticipate advanced AI systems will introduce substantial risks within 2-3 years.
• Data Management is Critical: Issues like privacy, compliance, and integrity are major concerns, with over half of respondents citing data breaches as a top threat.
• Auditing Enhances Readiness: Organizations conducting six or more technology audits annually demonstrate greater awareness and preparedness for emerging risks.

Recommendations for Technology Audit Leaders:

• Increase Audit Frequency: Conduct regular technology audits to proactively identify and address vulnerabilities.
• Strengthen Team Proficiency: Close skill gaps within audit teams to ensure they can tackle complex risks effectively.
• Leverage Advanced Tools: Integrate AI-driven solutions to improve threat detection and response.
• Focus on Cybersecurity: Prioritize robust defense mechanisms to combat evolving digital threats.
• Stay AI-Aware: Monitor developments in AI to anticipate and mitigate potential risks.
• Enhance Data Management: Safeguard privacy, ensure compliance, and maintain data integrity.
• Address Third-Party Risks: Strengthen oversight of external partnerships to minimize vulnerabilities.

By adopting these strategies, organizations can better navigate the dynamic technology risk landscape and fortify their operations against emerging threats.