New and challenging risks in 2024

Risk challenges 2024
Risk Management in 2024

Industry News: World Economic Forum Report

Highlights New and Challenging Risks in 2024

A recent Global Risk Perception Survey released by the World Economic Forum (WEF) highlighted a barrage of risks likely to intensify this year, and audit committees need to help executives limit potential losses and seize opportunities.

Experts from various sectors anticipate increased risks associated with extreme weather, deep AI fakes, social and political polarization, and cyberattacks in the coming decade. 

The survey, which gathered insights from 1,490 professionals in business, academia, government, the international community, and civil society, paints a cautious picture for the years ahead.

Key Findings:

1. Short-Term Outlook:

  • 54% of respondents foresee instability and a moderate risk of global catastrophes.

  • 27% expect even greater turbulence.

  • Only 16% anticipate a stable or calm outlook in the next two years.

2. Long-Term Outlook:

  • Over a 10-year timeframe, 63% of experts predict a turbulent global outlook.

  • Less than 10% expect a stable situation.

3. Overwhelming Challenges:

  • Many potential threats could overwhelm organizations, challenging their ability to navigate simultaneous or intersecting crises.

Outlook From the Report

1. Opportunities and Challenges for CFOs and Audit Committees:

  • CFOs and their C-suite colleagues anticipate higher revenue growth and profitability in the coming year.

  • However, they face challenges, including a significantly higher cost of capital compared to early 2022.

2. Navigating Economic Uncertainties:

  • Geopolitical uncertainty may impact profit expectations.

  • The top barriers to maximizing revenue growth and profitability in 2024 are increasing investment costs and slowing economic growth in key markets.

3. Focus Areas for Audit Committees:

  • The three biggest organizational risks are cyberattacks, human capital problems, and business continuity.

  • Audit committees are advised to consider the adept adjustment of finance teams to economic considerations, customer demand projections, and dynamic pricing strategies.

4. Global Areas of Audit Effort:

  • The top areas of audit effort worldwide include cybersecurity, governance reporting, business continuity, regulatory change, and fraud.

5. Regional Considerations:

  • In North America, governance reporting is low risk for organizations but high effort for internal audit.

6. Emerging Focus Areas:

  • Audit committees are encouraged to sharpen their focus on digital disruption and climate change.

  • Consideration may be given to reducing efforts to track financial liquidity, governance, and corporate reporting.

As organizations prepare for the next decade's challenges, it becomes critical for your leadership teams to address immediate risks and strategically position themselves to capitalize on emerging opportunities—the future calls for agile responses and proactive measures to weather the uncertainties ahead.

SafePaaS Access Governance and Controls for a Resilient Future

In the face of a complex and challenging decade, your organization must identify potential risks and implement strong measures to mitigate them. 

SafePaaS Access Governance and Controls platform is a strategic ally for your business to make informed decisions to navigate the uncertainties summarized by the World Economic Forum. 

5 Ways SafePaaS can play a pivotal role in fortifying a stable and resilient future:

1. Strengthening Cybersecurity Defenses

Cyberattacks rank among the top organizational risks, so SafePaaS provides a comprehensive solution for strengthening cybersecurity defenses. Offering potent access governance controls ensures that only authorized users can access sensitive data and critical systems. This approach significantly reduces the risk of data breaches and cyber threats.

2. Safeguarding Business Continuity

SafePaaS recognizes the critical importance of business continuity, especially in the face of potential disruptions. The platform assists organizations in implementing effective controls to ensure uninterrupted operations during crises. By monitoring and managing access to key systems, SafePaaS helps safeguard business processes, preventing disruptions that could arise from unforeseen challenges.

3. Ensuring Regulatory Compliance

SafePaaS supports organizations in adapting to evolving compliance requirements in an era marked by regulatory changes. The platform facilitates governance and corporate reporting, ensuring that organizations stay compliant with industry standards and regulations. This approach mitigates risks associated with non-compliance and fosters a culture of accountability within your organization.

4. Addressing Human Capital Challenges

Acknowledging human capital problems as one of the significant organizational risks, SafePaaS addresses human capital challenges by aligning management and strategic goals, preventing policy violations, and monitoring compliance with regional regulations. It ensures granular control over SoD and access permissions, optimizing workforce management and reducing risks. 

5. Adaptive Strategies for Economic Uncertainties

SafePaaS assists organizations in traversing economic uncertainties by offering dynamic adaptability. As geopolitical factors impact profit expectations, the platform enables finance teams to quickly adjust security models, optimizing financial controls in economic fluctuations.

SafePaaS Access Governance and Controls platform is the jewel in an organization's risk mitigation and resilience strategy. By addressing the challenges outlined in the Global Risk Survey, SafePaaS enables leadership teams to weather the storms of the coming decade and capitalize on emerging opportunities. As organizations prepare for the future, integrating SafePaaS becomes a proactive step towards a stable and resilient trajectory in an uncertain decade.