Sixty-four percent of respondents indicated that accelerating privacy regulation was a key risk facing their organizations.
Concerns about rapidly accelerating privacy regulations and their associated regulatory burdens became the top emerging risk that organizations face globally, according to Gartner’s latest Emerging Risks Monitor Report.
The quarterly survey of 98 senior executives across industries and geographies showed that “accelerating privacy regulation” had overtaken “talent shortages” as the top emerging risk in the Q1 2019 Emerging Risk Monitor survey. Concerns around privacy regulations were consistently spread across the globe, denoting the increasingly numerous and geographically specific regulations that companies must now comply with.
Sixty-four percent of respondents indicated that accelerating privacy regulation was a key risk facing their organizations. The data showed a particularly elevated concern among executives from the banking, financial services, technology and telecommunications, and food, beverage and consumer goods sectors, with at least 70 percent of executives in each sector indicating it as a top risk.
In addition to being rated the top risk this quarter, accelerating privacy regulation was also rated as a risk with “very rapid velocity,” meaning that the risk would have high organizational impact if it were to materialize.
This may hint at a wariness among executives of the potentially large fines and reputational damage associated with violations of GDPR and similar legislation. Accelerating privacy regulation was also rated as the highest-probability risk of any of the top 10 in this quarter’s report, demonstrating that executives view it as a concrete threat to their organizations.A number of other emerging risks cited in the survey may also be contributing to executive unease around accelerating privacy regulation. “Pace of change” was the second overall risk most concerning to executives surveyed. It was also rated as one with “very rapid velocity,” indicating executives are unnerved by their companies’ inability to avoid disruption and mitigate risk factors. Concerns about lagging or misconceived digitization were both among the top five risks, while outdated policies and procedures were flagged as a top 10 risk.