Global business leaders of professional services firms are predicting a brighter future for their businesses, and are confident in their ability to grow and prosper in the coming year ahead according to our latest Risk & Confidence research.
Economic uncertainty caused by Brexit and government monetary, fiscal and trade policies is the major concern for business leaders in the professional services sector but surprisingly it’s Technology risk (IT system failure, disruption from new tech-enabled competitors or start-ups) that is considered their biggest risk concern in May ’19.
Why is technology topping the risk agenda?
Traditionally, the professional services sector has been slow to embrace technological change but there’s no doubt the sector is being disrupted, both by new start-ups and existing firms adopting new technology to deliver new and innovative services.
Despite a sharp decline in investment in business fundamentals globally, 60% of professional services firms are focused on using new technology that will enable growth and prosperity to improve efficiency and deliver new services:
Technology will amplify interconnected risks
Whilst it’s good to see Professional Service firms rank Tech risk as their biggest concern, they must also focus on the interconnected risks that result from tech adoption; from cyber, supply chain and reputation threats. Head Risk of Control, Stuart Kenyon’s blog on how to reduce Reputational Risk can be found here
Tina Booth
Head of Professional Indemnity
Download special reports:
Interconnected Risk: Roundtable Discussion – May 2019
Future Trends Insight Report: Technology – January 2019
For more insights read the Global Risk & Confidence Survey here