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Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

Risk Management Statistics 2024 — 45 Key Figures

Key take-aways

  • Risk management is crucial for organizations when it comes to defending themselves and everything they work for.
  • Risk management not only protects businesses by minimizing the impacts of risks but also by preventing them altogether.
  • Risk management has become more crucial because of threats like cybercrime, and many more new threats because of progressing technology.

A good risk management program can ensure an organization’s minimization of loss or danger of any kind. Risk management helps organizations by assessing the kinds of risks they may face due to any number of reasons.

What is Risk Management?

Risk management is a process that identifies, assesses, and controls threats to an organization’s capital, earnings, and operations. There are a variety of risks from financial uncertainties, procurement risks, legal liabilities, supply chain risks, natural disasters, and even PR scandals.

Effective Risk Management shows an organization the full array of risks that it faces and makes sure to have a strategy for avoiding and mitigating these risks as much as possible.

45 Risk Management Key Figures of 2024

Here are some of the key figures in Risk Management that may be of significance for today’s current climate.

1. PwC Pulse Survey says 65% of corporations will increase investments in data analytics

Over the next 12 months, the PwC Pulse Survey says 65% of corporations will increase investments in data analytics.

It is better to lose money in guarding assets than losing money because they were damaged or stolen. Corporations are starting to learn this lesson and are increasing their investments in data analytics.

2. According to PwC Pulse Survey 43% are very concerned about supply chain risks to their company’s growth in 2023

As more risks begin to show themselves in the modern world, concern follows its stead. According to the PwC Pulse Survey, 43% are very concerned about supply chain risks to their company’s growth in 2023. With these growing concerts no doubt vigilance will also follow.

3. 92% of organizations actively engage with lawmakers to influence cyber policy says PwC Pulse 

Since corporations no longer underestimate cybercrime they see the wisdom of getting the law to back their side against it. 92% of organizations actively engage with lawmakers to influence cyber policy and closely monitor it, says PwC Pulse.

4. PwC Pulse Survey says 75% of organizations can’t keep up with improving risk management

PwC Pulse Survey says that despite their investment and improvements in risk management 75% of organizations can’t keep up with improving risk management due to the rapidly changing regulatory environment.

79% of executives even say that their top challenge is keeping up with the pace of digital and related transformations.

5. According to PwC Pulse Survey 64% of risk leaders worry about economic challenges

Macroeconomic uncertainty is a big concern as 64% of risk leaders worry about a possible recession, stock market volatility, and other macroeconomic conditions according to the PwC Pulse Survey.

The economic worries are dominant compared to the 56% of other worries that plague risk leaders.

6. 47% of organizations in the PwC Pulse Survey worry about a more active regulatory and legislative environment

According to the PwC Pulse Survey, 47% are very concerned about an active regulatory environment, with 39% very concerned about compliance and regulatory risk, all while evolving cyber threats shape risk leaders’ preparations for 2023.

7. According to PwC Pulse Survey 57% of risk leaders will spend more on automating their processes

PwC Pulse Survey shows that 57% of risk leaders are on track to spend more for the automation of their processes so that they can better monitor risks.

Most surveyed Chief of Operations (CIO) over the survey period have been planning to increase investments in digitization of the supply chain, infrastructure, and operations overall.

8. Only 33% of risk leaders will spend more overall in the next 12 months according to the PwC Pulse Survey

33% of risk leaders plan to increase spending, 57% will maintain current budgets, and 8% intend to reduce spending according to the PwC Pulse Survey. To prepare for an uncertain future, cost-effective investments with an emphasis on automation are key.

9.  A PwC analysis of Sarbanes-Oxley suggests that a 15% increase in automation can yield a 10% decrease in compliance costs

Risk executives understand the correlation between automation and compliance costs and 81% were surveyed to trust in their ability to drive down compliance costs while mitigating risks.

A PwC analysis of Sarbanes-Oxley suggests that a 15% increase in automation can yield a 10% decrease in compliance costs is proof of this claim.

10. According to PwC Pulse Survey Fraud risks businesses may experience more than the usual 5% of revenue for fraud costs

Starting in 2022, fraud incidents and new schemes have surged due to economic challenges and increased digital access to financial systems inside and outside of companies.

According to the PwC Pulse Survey Fraud risks businesses may experience more than the usual 5% of revenue for fraud costs.

11. 92% of risk leaders monitor cyber developments closely says PwC Pulse Survey

Cybersecurity is the top policy priority, with 92% of risk leaders closely monitoring it. A majority of 86% of all executives, except for tax and HR leaders, name cybersecurity as their top area of engagement and monitoring, according to the PwC Pulse Survey.

12. IMARC Group expects the risk management market to reach US$ 23.7 Billion by 2028

In 2022, the global risk management market ballooned to a size of US$ 10.5 Billion. IMARC Group anticipates the market will expand to US$ 23.7 Billion by the year 2028, demonstrating a growth rate (CAGR) of 14.13% for the years 2023-2028.

13. According to Gitnux 36% of organizations plan to increase investment in risk management and compliance in the next 2 years

Gitnux reports that 36% of organizations plan to boost investment in risk management and compliance over the next two years. This highlights their recognition of the significance of these areas for asset protection and legal compliance.

14. 87% of risk professionals feel their risk management processes are not widely accepted says Gitnux

87% of risk professionals feel their risk management processes are not widely accepted (says Gitnux), which highlights a concern in risk management implementation. This emphasizes the need for organizations to take risk management seriously.

15. Gitnux says that 73% of firms cite economic uncertainty as the biggest risk to business

Gitnux says that 73% of firms cite economic uncertainty as the biggest risk to business. This statistic sheds light on the economy’s impact on businesses and the need for strong risk management to shield against economic uncertainty.

Businesses should prepare for the dynamic economic landscape as its tides may change at any time.

16. According to Gitnux 76% of companies are prioritizing their  enterprise risk management (ERM) program

According to Gitnux 76% of companies already have or intend to implement an enterprise risk management (ERM) program as they know that it plays a crucial role in defending their organizations and ensuring success in their business endeavors.

17. 33% of organizations do not have a designated Chief Risk Officer (CRO) says Gitnux

Gitnux reports that 33% of organizations do not have a designated Chief Risk Officer (CRO), showing a gap in risk management focus.

This suggests some organizations might face costly mistakes and potential disasters since they do not have a designated CRO to identify and manage risks effectively.

18. According to AICPA and NC State University 65% of senior finance leaders agree that corporate risks have changed extensively

According to AICPA and NC State University 65% of senior finance leaders have come to the agreement that the volume and complexity of corporate risks have changed “mostly” or “extensively” over the last five years.

This warns risk management professionals to always be on their guard due to the ever-changing landscape of risk management.

19. 75% of executives predict that their business continuity planning and crisis management will change drastically

Almost three-fourths or 75% of executives believe there will be significant changes in their organization’s approach to business continuity planning and crisis management according to AICPA and NC State University.

Times are changing and so are the methods businesses use to defend themselves against external and internal threats.

20. According to IBM about 74% of organizations said they had an incident response (IR) plan

IBM reports that nearly three-quarters or about 74% of organizations have an incident response (IR) plan, and 63% regularly test it. Those with a tested IR plan saved an average of $2.66 million in breach costs which marks a 58% cost reduction.

21. 64% of organizations view third-party risk management as a strategic imperative by their boards and executives

64% of organizations consider third-party risk management a strategic imperative for their leadership, with over 81% effectively quantifying and communicating its value to business leaders and stakeholders, according to ProcessUnity and CyberGRX.

22. DTEX Systems says the average annual cost of an insider risk has increased to 40% over four years

DTEX Systems says the average annual cost of an insider risk is $16.2M which is a 40% increase over four years. The average number of days to contain an insider incident in 2023 is 86 days. This is a lot of time and a lot of money bleeding out of business.

23. DTEX Systems reports that 46% of organizations plan to boost investment in insider risk programs in 2024.

According to DTEX Systems, Almost half (46%) of organizations are planning to increase their investment in insider risk programs in 2024. 77% of organizations have started or are planning to start an insider risk program already.

24.  88% of organizations spent less than 10% of their total IT security budget on insider risk management according to DTEX Systems 

88% of organizations spent less than 10% of their total IT security budget on insider risk management, says DTEX Systems.

The lack of IT security budget seems to coincide with the rise in cybercrime attacks which means that maybe businesses should invest more in their IT security budget and save themselves millions of dollars worth of loss.

25. According to BussinessWire 52% of surveyed cybersecurity professionals have experienced more attacks compared to last year

BusinessWire’s research shows that among cybersecurity professionals experiencing changes in the frequency of cyberattacks 52% of surveyed cybersecurity professionals have experienced more attacks compared to last year.

26. Businesswire states only 8% of organizations do cyber risk assessments monthly 

Businesswire states that though businesses recognize the increased threat, less than one in ten or 8% of the organizations who complete cyber risk assessments do these monthly while two in five or 40% of these conduct them annually.

27. 62% of respondents have an understaffed cybersecurity team

A lack of human resources is contributing to organizations not measuring and testing their cyber defenses regularly. According to Businesswire, almost two-thirds, or 62% of respondents report having a cybersecurity team that is understaffed.

28. 39% of organizations that are understaffed looking to fill entry-level positions that do not require experience, university degree, or credentials

Of those organizations with unfilled cybersecurity roles, 39% are looking to fill entry-level positions that do not require experience, university degree, or credentials, says Businesswire.

Usually, almost half, or 44% of organizations state that they require a university degree to fill entry-level cybersecurity positions.

29. According to Businesswire 50% of the organizations surveyed are upskilling non-security staff

There are steps to address the cyber skills gap and enhance cyber resilience and organizations are starting to invest in them.

According to Businesswire, among surveyed organizations already taking action, 50% upskill non-security staff, 46% use more contractors or consultants, and 27% implement reskilling programs.

30. Prevalent found that 48% of companies still depend on spreadsheets

According to The 2023 Third Party Risk Management Study: How Are Organizations Avoiding TPRM Turbulence released by Prevalent, 48% of companies still depend on spreadsheets, while 41% report experiencing an impactful third-party breach in the last year.

31. 71% of companies report that data breach is their biggest concern regarding third parties

Prevalent surveyed that 71% of companies report that the top concern regarding the usage of third parties is a data breach or other security incident due to poor vendor security practices.

Companies now take extra precautions and it was reported that not monitoring for third-party breaches dropped from 12% to 4%.

32. 70% of respondents report that Information Security (InfoSec) is the most in third-party risk management than ever says Prevalent

According to Prevalent, 70% of respondents report that Information Security (InfoSec) is more involved in third-party risk management than ever, and 71% indicate that InfoSec fully owns the TPRM program.

This was mainly due to third-party data breaches and security incidents which were recounted as the reasons for an increase in involvement in third-party risk management by 62% of respondents.

33. Prevalent states that 48% of organizations are using spreadsheets to assess third parties.

Prevalent reports an increasing use of spreadsheets for third-party assessments, with 48% of organizations employing them. This is a rise from 45% in 2022 and 42% in 2021.

Notably, only 4% of respondents no longer assess third parties, marking a decline from 10% in 2021 and 8% in 2022.

34. According to Packetlabs there are an estimated 800,000 cyberattacks per year in 2023

Packetlabs reports an estimated 800,000 cyberattacks per year in 202, a number that is expected to keep increasing each year. Furthermore, there are approximately 300,000 new daily malware creations which impacts over 4.1 million websites online.

35. Packetlabs reports that 97% of security breaches are exploiting WordPress plugins every 39 seconds

Packetlabs reports that 97% of security breaches are exploiting WordPress plugins every 39 seconds when a threat actor targets a business’s cybersecurity.

It should also be noted that 92% of malware arrives via email and that in 2023, organizations take an average of 49 days to detect a cyberattack.

36. 58% of Risk Professionals identify poor data quality as the greatest data-related risk

According to McKinsey, poor data quality is the data-related risk of greatest concern for 58% of risk professionals. It can lead to missed opportunities, lost revenue, reduced operational efficiency and productivity, reputational damage, inaccurate analyses, and lack of compliance, and organizations believe it to be responsible for an average of $15 million per year in losses. 

37. 63% of executives view their organization’s risk management program as effective

According to a survey by the AICPA and NC State University, just under two-thirds (63%) of executives believe that their organization’s risk management program is effective. However, despite this perception, most organizations describe their risk management processes as immature, and the majority do not believe that their risk management processes provide a competitive advantage.

38. 47% of organizations prioritize upskilling their risk workforce on emerging technologies

PwC’s Global Workforce Hopes and Fears Survey 2023 revealed that 47% of organizations prioritize upskilling their risk workforce on emerging technologies. The survey also found that more than half of the respondents believe that the skills their jobs require will change significantly in the next five years.

This emphasis on upskilling is in line with the trend of reskilling and upskilling is a crucial strategy for talent retention and recruiting.

39. 35% of risk executives identify compliance and regulatory risk as their top concern

Based on Secureframe, 35% of risk executives identified compliance and regulatory risk as their top concerns, reflecting the significant focus on these areas in the current business landscape. This highlights the top priority placed on compliance and regulatory risk management by organizations and the growing challenges they face in this area.

40. 41% of organizations have experienced three or more critical risk events in the last 12 months. 

According to a report by SecureFrame, 41% of organizations have reported experiencing three or more critical risk events in the last 12 months. This statistic highlights the significant impact of risk events on businesses and the importance of robust risk management strategies. 

The increasing frequency of risk events underscores the need for organizations to prioritize risk management and compliance to ensure resilience and continuity. 

41. Information security risks were the primary concern for 32% of ERM professionals, followed by risks to data privacy (28%). 

According to Forrester, information security risks were the primary concern for 32% of enterprise risk management (ERM) professionals, with risks to data privacy following closely at 28%. The report, based on a survey of 360 ERM decision-makers in North America and Europe, also found that 41% of organizations have experienced three or more critical risk events in the last 12 months.

This indicates a growing concern for information security and data privacy among ERM professionals and organizations.

42. Global risk management software market is expected to reach $23.57 billion by 2028

The global market for risk management software is growing rapidly, with estimates suggesting it will reach USD 23.57 billion by 2028 according to Grand View Research Inc. This growth is driven by factors such as technological advancements, increasing data volumes, and the need for effective risk analysis and management across various industries

43. 31% of risk executives identify third-party risk as the primary threat to company growth

According to a PwC survey, 31% of risk executives believe that third-party risk, among other operational risks, poses the greatest threat to their company’s ability to drive growth. This statistic highlights the importance of effective third-party risk management programs to mitigate potential risks and ensure business continuity. 

As more organizations continue to rely on third-party vendors, it is crucial to implement proper risk management processes to protect against potential breaches and other security incidents.

44. 58% of survey respondents believe current spending on insider risk programs is inadequate

58% of companies view current spending on insider risk programs as inadequate, according to DTEX Systems. Insider threats are a growing concern for businesses, with approximately 60% of data breaches caused by insiders, and the average cost of an insider threat incident in 2023 being $15.38 million.

To reduce these risks, companies are adopting formal insider threat programs and using tools such as data leak prevention software, user behavior analytics, and employee monitoring and surveillance.

45. 98.3% of organizations maintain vendor relationships with third parties that experienced a breach in the last two years 

98.3% of organizations have a relationship with a third party that has experienced a breach in the last two years, according to a report by the Cyentia Institute and SecurityScorecard. This highlights the importance of managing third-party risk and maintaining strong vendor relationships to mitigate potential risks to organizations. 

Additionally, 50% of organizations have indirect relationships with at least 200 fourth parties that have had breaches in the last two years.

Importance of Risk Management

Organizations face all kinds of uncertainties and minimizing those uncertainties greatly improves the organization’s chances of being successful.

Risk Management can calculate these uncertainties that corporations face and even how much impact these uncertainties have on the corporations themselves and the global community.

Having good risk management means having a good basis for decision-making and acting proactively instead of reactively when faced with risks. It mitigates and minimizes the impact of risks since it is handled professionally and systemically.

Conclusion

Although risk management proves to be useful and integral for smooth business affairs it is still often overlooked. Organizations can do so much more to help themselves when it comes to risk management.

There is a need for more comprehensive approaches to dealing with potential threats, especially with the ever-changing landscape of risk management.

As new technologies and business practices grow, threats also lurk in the background ready to pounce on any weakness and ensure harm to an organization. Firms should keep vigilant and make sure their risk management programs are up to date and in constant improvement.

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Frequentlyasked questions

What is Risk Management?

Risk management is the process of identifying, assessing, and mitigating potential threats or uncertainties.

Why is Risk management important?

Risk management is important because it strengthens an organization’s defenses against threats and uncertainties.

What is the biggest challenge for Risk Management?

The biggest challenge for risk management is the ever-changing landscape, especially when it comes to digitization and technology. There is also the challenge of being undervalued.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.

Marijn Overvest Procurement Tactics