The speed of change in the corporate landscape is redefining how organizations view and manage risk. Technological acceleration, geopolitical instability, regulatory evolution, and increasing compliance pressures demand an integrated and strategic approach.
Recent data from KPMG reveals how different leadership profiles — CROs (Chief Risk Officers), CEOs (Chief Executive Officers), and COOs (Chief Operating Officers) — are prioritizing key risks for the coming years. The study highlights important convergences but also differences in perception that can directly influence the effectiveness of corporate governance.
The Overview of Key Risks
1. Technological and Innovation Risks
CROs lead the concern (58%), followed by CEOs/COOs (51%) and other executives (42%). This shows that risk leaders are more sensitive to the impact of disruptive technologies — such as artificial intelligence, cybersecurity, and automation — on business continuity. Digital transformation is both an opportunity and a vector for growing vulnerabilities.
2. Geopolitical Risks
This is where the greatest perception gap emerges: 58% of CROs prioritize this topic, compared to 41% of CEOs/COOs and only 28% of other leaders. Issues such as wars, economic sanctions, changes in trade agreements, and political instability affect supply chains, costs, and market access. Often, companies with domestic operations underestimate the indirect effects of this type of risk.
3. Regulatory and Compliance Risks
Here, alignment is clearer: CEOs/COOs (58%) and CROs (56%) recognize that regulatory pressure will continue to rise, with new requirements in ESG, data privacy (such as Brazil’s LGPD), and AI governance. Compliance has evolved from being a mere legal obligation to becoming a competitive differentiator and a critical reputation factor.
4. Strategic Risk
Nearly all executives recognize its relevance: CROs (60%), CEOs/COOs (57%), and other executives (49%). Corporate strategy, if not adapted to volatile scenarios, can lead to significant losses. The ability to quickly adjust the company’s direction is essential to mitigating this type of risk.
5. Operational Risk
CEOs and COOs (59%) place greater emphasis on this aspect, reflecting their direct responsibility for day-to-day operations and results delivery. CROs (49%) see operational risk as a consequence of other untreated risks. Operational efficiency is, therefore, the final link in a broader risk management chain.
The Role of Artificial Intelligence in Risk Management
A key insight from the study is that AI, and particularly generative AI, is viewed as one of the most promising technologies for managing additional risk responsibilities over the next three to five years.
Practical applications include:
- Continuous monitoring of critical variables.
- Scenario simulations and predictive analytics to anticipate crises.
- Automation of compliance reports and processes, freeing teams for strategic activities.
This trend reinforces that digitalizing risk management is no longer optional — it’s essential for maintaining competitive advantage.
Challenges and Opportunities for Organizations
Challenges
- Aligning divergent risk perceptions across leadership areas.
- Keeping pace with the rapid evolution of regulations.
- Incorporating geopolitical variables into businesses with predominantly local operations.
Opportunities
- Integrating cutting-edge technology, such as generative AI, into Governance, Risk, and Compliance (GRC) frameworks.
- Strengthening cross-functional forums for joint priority setting.
- Building a proactive risk management culture that anticipates issues before they escalate.
Strategic Recommendations
- Establish alignment forums between CRO, CEO, and COO to converge on risk prioritization.
- Incorporate artificial intelligence and predictive analytics into the GRC structure.
- Link strategic, technological, and regulatory risks to operational impacts.
- Implement continuous monitoring with periodic reviews and trigger indicators.
Conclusion
The study reveals that while there is convergence on topics like compliance and strategy, significant differences remain in how technological and geopolitical risks are perceived. For an organization to be resilient, it must integrate these perspectives, adopt advanced monitoring technologies, and foster a mindset of continuous adaptation. In today’s environment, risk management is not just about avoiding losses — it’s about creating competitive advantage.