Such levels of assurance represent a remarkable sea-change in attitudes in a relatively short timeframe: our 2019 Global Risk Survey found that just 19% of leaders felt confident that their team had the right combination of skills and talent to effectively manage digital risk.
This new-found confidence extends to their perceptions of their performance, with four in five (79%) believing have achieved the desired value or return on investment (ROI) from their digital transformation activities in the last 12 months.
While nearly half (46%) express concern that the digital dividend, in the form of value creation, is taking longer than expected to materialise, this nevertheless indicates a step change from the state-of-play reported in our 2019 Global Risk Survey.
At that point, just 40% of organisations were adopting digital technology at scale. The impetus to accelerate digital transformation generated by the pandemic is a contributory factor to this.
However, benchmarking against consumer perspectives suggests that this confidence around digital risk may verge on hubristic at times.
Consumers are far from passive when it comes to their reaction and response to being exposed to digital incidents. Instead, they would proactively seek restitution and redress. More than two in five (43%) would stop engaging with an organisation or switch suppliers while a third (33%) would report an organisation to the regulator.
Worryingly, just 15% of business leaders have identified and acknowledged the risk of customers abandoning them as the result of digital incidents.
This failure to anticipate or mitigate digital risks has clear implications for the functioning of the organisation, given the potential to create adverse impacts on customer experience, society, operational efficiency, profitability, and public reputation.