While companies across various industries in East Africa and around the world are increasing their focus on emerging technologies to help transform their businesses; many are not assessing the risks that come with their adoption, according to KPMG’s US Tech Risk Management Survey.
Nearly half (47 percent) of the 200 senior IT risk management executives surveyed; whose companies have adopted mobile applications and devices have not included them in recent IT risk assessments. The findings for other emerging technologies are similar with: 46 percent that adopted Internet of Things (IoT), 44 percent that adopted cloud computing, 34 percent that adopted artificial intelligence (AI) and 32 percent that have adopted robotics process automation (RPA) not assessing their risks.
Gerald Kasimu, Head of Advisory at KPMG East Africa, said:
“In East Africa, change and disruption will continue to influence the pace of technological transformation; however it cannot be at the expense of your organisation. Tech risk management should anticipate changes while or before they happen and determine the associated risks. Accordingly, tech risk management should be involved in strategic business planning, embedding the risks and adding value upfront.”
In KPMG’s survey: While not actively assessing the risks of adopting emerging and disruptive technologies; the majority of those surveyed are very aware that these risks exist.
And, the risks may only escalate as companies seek to increase their investment in these technologies. The survey found that companies expect to make significant investments over the next year in mobile (48 percent), IoT (46 percent), cloud computing (46 percent), RPA (41 percent) and AI (40 percent).
“Tech risk management is challenged to improve how it filters through data in a meaningful and consistent way so that it can efficiently communicate how this data impacts the business,” said Antony Nzamu, Associate Director in KPMG East Africa. “The proper parameters should be created to classify data so that the organisation can make wellinformed business decisions from it.”
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