The Impact of Digital Transformation Requirements on Risk Management

Abstract

This research takes a look at how the imperatives of digital transformation impose an impact on the landscape of risk management strategies across four dimensions: the adoption of technology, cybersecurity and data privacy, regulatory compliance, and finally, risk mitigation strategies. 100 participants from different walks of industry from jordan responded to structured questionnaires in the assessment of how such organizations operate to manage emerging risks ushered in by digital technologies. Results indicate that while digital transformation significantly enhances operational efficiency and agility, it introduces new causes for concern in cybersecurity and compliance. Respondents showed a high level of investment in technology with a mean of 4.3 and efficiency improvement at a mean of 4.5, although some shortcomings persist regarding employee cybersecurity awareness, with a mean of 3.6, and complexity of regulatory compliance, with a mean of 3.7. Although risk mitigation strategies have become common, only 32% of organizations have integrated their risk management teams into digital initiatives. This paper concludes by remarking on the basis of an update an organization needs to make to its risk management framework, improve cybersecurity training, and undertake proactive compliance mappings in order to achieve successful meeting of the complexities posed by the digital era.