UK businesses risk neglecting risk management amid digital transformation push
A new study from Forvis Mazars suggests that digital transformation is top of the agenda, in the UK and overseas. But despite rising awareness of the risks of AI tools, few firms in the UK are prioritising risk management as part of their digital agenda.
Drawing on insights from C-suite leaders across more than 35 countries, the research from Forvis Mazars has found that organisations are preparing for a period of rapid change. Examining the forces shaping global business, the study found that a majority of firms were now looking to transform their IT and technology basis to adapt.
The UK is no exception to this. While the emergence of technologies has taken a back seat in terms of the things most impacting companies as 43% of respondents said economic trends were the top issue of the day (ahead of a third who either cited ESG or technology trends), many firms see investing in digitalisation as a way of future-proofing against other threats.
UK business leaders continue to prioritise digital transformation, with a strong emphasis on efficiency, growth and security – closely aligned with global trends. A 51% majority of UK leaders prioritise technology transformation on this basis – ahead of 25% adapting due to climate change, or 24% looking to boost talent attraction.
UK leaders are more likely than their global peers to see AI as having a major impact in these areas. However, there is something of a strategic gap when it comes to implementing these changes.
Risk management
Rising ethical concerns and calls for regulation were cited by 54% of respondents – up from 49% – that awareness of the risks and responsibilities that come with AI are rising. But at the same time, there is a lower focus on risk management relating to digital transformation in the UK, than globally. Around the world, 37% of leaders said risk management was a priority, ahead of 31% of UK based businesses.
Instead, many firms in the UK may be passing the buck to legislators. Forvis Mazars found that in 2024, 70% of respondents said regulation of AI was important, but that has risen by 10 points in the last 12 months. Now, 33% regard regulation as ‘essential’, while 47% say it is at least ‘very important’ to the ethical and effective use of AI.
International growth
Amid this, UK businesses also seem more determined than their global counterparts to expand into new markets. An 85% majority still plan to expand internationally in the coming five years. In total, only 12% of UK firms said they definitely had no such plans, compared to 16% of global respondents.
Understanding local regulations and requirements has been seen as the biggest barrier to UK firms setting up in new countries. This was said by 60% of UK respondents – ahead of 53% of the global poll. Meanwhile, 45% of UK respondents added national or international political instability was a draw-back for them – ahead of 44% of global respondents.
