Risk 2025

Question 2

What was the fastest-growing risk area identified in the Risk in Focus 2025 survey?

Answer 2

Digital disruption, new technologies, and AI

Question 3

What is predicted to rise from the 4th most pressing threat in 2025 to second place by 2028?

Answer 3

Digital disruption, new technology and AI

Question 4

What has given fresh impetus to organizations’ digitalization efforts and helped to boost the strategic importance of new technologies?

Answer 4

The advent of generative artificial intelligence (gen AI)

Question 5

Why do businesses’ future digitalization and AI strategies need to be underpinned with an effective change-management plan and an AI-specific human resources strategy?

Answer 5

Because AI is predicted to accelerate competition risk, meaning organizations need to both implement efficiencies to manage costs and be able to rapidly innovate new products and services to meet shifting market expectations

Question 6

What did the Risk in Focus 2025 survey identify as the top two threats that would be most negatively impacted by AI?

Answer 6

Cybersecurity and fraud

Question 7

Besides cybersecurity and fraud, what other risk areas did the survey identify as being the most likely to be negatively impacted by AI?

Answer 7

Digital disruption and human capital

Question 8

What percentage of respondents to the Risk in Focus 2025 survey said that cybersecurity and data security was a top-five risk?

Answer 8

83%

Question 9

What did the Risk in Focus 2025 survey identify as the most pressing risk for organizations in 2025?

Answer 9

Cybersecurity and data security

Question 10

What percentage of respondents to the Risk in Focus 2025 survey identified cybersecurity and data security as their top priority?

Answer 10

Almost 4 in 10 (37%)

Question 11

What is the average length of time that it took hackers to move laterally across a business after penetrating defenses, in 2024?

Answer 11

1 hour

Question 12

True or False: According to the Risk in Focus 2025 report, new AI-powered techniques are blurring the lines between what businesses have generally considered to be external and internal security threats.

Answer 12

True

Question 13

What is a key strategic and competitive risk for organizations in all sectors?

Answer 13

Human capital

Question 14

What percentage of CAEs in the Risk in Focus 2025 survey cited human capital, diversity, talent management and retention as a top-five risk?

Answer 14

52%

Question 15

What was the second biggest threat identified in the Risk in Focus 2025 survey?

Answer 15

Human capital issues.

Question 16

What risk does a low rate of staff turnover pose to a business?

Answer 16

Long-serving staff may fail to adapt to the changing needs of the business.

Question 17

What does the Risk in Focus 2025 report refer to as ‘grey zone aggression’?

Answer 17

The ability of state and state-sponsored actors to disrupt operations and trade using methods such as state-sponsored cyberattacks and attacks on shipping.

Question 18

True or False: The Risk in Focus 2025 report argues that digitalization and new technologies mean that conflict in the 21st century is no longer defined solely by direct combat between armies.

Answer 18

True

Question 19

Provide an example of the type of business activity that could be subject to second or third-order impacts as a result of trade embargoes and sanctions.

Answer 19

A business may need to reassess its ties with suppliers in a particular region due to political activism.

Question 20

What is the name of the body that drafts reporting standards for the European Commission?

Answer 20

EFRAG

Question 21

What percentage of CAEs in the Risk in Focus 2025 survey said that climate change, biodiversity, and environmental sustainability was a top-five risk?

Answer 21

33%

Question 22

What is the title of the European Union legislation that committed to achieving net-zero emissions by 2050?

Answer 22

The European Union’s Climate Law (under the Green Deal)

Question 23

Identify three ways in which organizations are changing their business practices in order to transition to a greener economy.

Answer 23

1. Changing the composition of their portfolios
2. Replacing or relocating suppliers to cut carbon footprints
3. Launching new products

Question 24

According to a report by the UK Financial Reporting Council, what aspect of the transition to a greener economy do many businesses struggle to clearly explain?

Answer 24

Transition plans–specifically, businesses often lack clear targets

Question 25

According to a report by the UK Financial Reporting Council, what aspect of the transition to a greener economy do many businesses struggle to clearly explain?

Answer 25

Transition plans–specifically, businesses often lack clear targets and metrics.

According to a report by the UK Financial Reporting Council, many businesses struggle to clearly explain transition plans, often lacking clear targets and metrics.

Question 26

What risk do financial services groups wishing to launch green and sustainable bonds and socially responsible investment products face?

Answer 26

Charges of greenwashing

Financial services groups wishing to launch green and sustainable bonds and socially responsible investment products face charges of greenwashing.