In an evolving world where data drives decisions, protecting it isn’t optional. It’s essential for growth and resilience. The future belongs to organisations that manage data risk proactively.
Our Risk Consulting team have put together an insightful guide to explain the organisational importance of managing data risk and how to mitigate it during the current uncertain times.
Data risk implies that the data could be:
Data risk arises when sensitive information and the systems that process it are exposed, mismanaged, or compromised.
The impact could be financial loss, poor business decisions, reputational harm, regulatory penalties, and diminished trust.
Managing data risk holistically is critical to staying ahead of emerging threats. Many organisations are at a crossroads, making significant decisions about data investments that will shape their future.
Average breach costs are rising globally, and business disruption is the dominant driver. Organisations that deploy modern data risk practices recover faster and spend less. Mitigation of data risk supports businesses in enabling technology adoption, improve operational efficiency and facilitate organisational change.
Business and regulatory drivers are converging due to accelerated technology change. GDPR enforcement remains vigorous to ensure better data risk mitigation.
As global data continues to grow, data risk is preventing use as a strategic asset and increasing cost of compliance.
The data shows that organisations increasingly view data transformation as a core enabler of effective analytics, with 62 percent considering it critical to their cloud strategy.
At the same time, 40 percent of organisations recognise data transformation as integral to regulatory compliance, reinforcing that data transformation is not simply a technical exercise but an essential part of maintaining controlled and compliant data environments.
However, the figures also show that progress is often constrained, with 29 percent of organisations citing a lack of skilled personnel as a major barrier. Together, these findings highlight both the strategic importance of data transformation and the practical challenges that continue to slow or hinder these initiatives.
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The data below indicates that many organisations continue to face challenges in relying on the accuracy of the information used in day to day and strategic decisions
Fifty eight percent of surveyed organisations report making key decisions based on data that is inaccurate or inconsistent, pointing to a persistent risk in how information is assessed and applied.
Although 80 percent recognise the importance of sound data governance, only 35 percent consider their data to be compliant with GDPR. This contrast shows that while the value of trustworthy data is understood, many organisations still struggle to achieve the level of quality and control needed to support confident and defensible decision making.
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With the global market projected to reach 1.55 trillion dollars by 2027, organisations are investing heavily in technologies that depend on reliable and well managed data. Yet the figures also show that data quality remains a persistent obstacle.
Eighty five percent of machine learning projects fail due to issues such as poor data quality or insufficient relevant data, and 78 percent of organisations identify data quality as their primary concern when adopting AI.
These results indicate that while the market continues to expand rapidly, progress in advanced technologies is often limited by the underlying condition of organisational data, making data quality a determining factor in whether these investments achieve their intended outcomes.
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Projected global digital transformation market by 2027
of machine learning projects fail to due to issues like poor data quality or insufficient relevant data
of organisations report that data quality is the biggest concern in AI adoption
Managing data risk is not just an IT function or a compliance checkbox, it’s a business-wide responsibility. Every employee who touches data plays a part in protecting its integrity, confidentiality, and availability.
From following policies to reporting anomalies, these everyday actions form the first line of defence. But the ultimate accountability lies with senior management.
The C-suite doesn’t just approve budgets; they define the organisation’s risk appetite, set governance priorities, and make strategic decisions that determine how data is used to create value.
This matters because data is now a core asset. Decisions about mergers, AI adoption, cloud migration, customer experience and sound business decisions, hinge on reliable, secure data. If leadership treats data risk as a strategic imperative, the organisation gains resilience, accelerates innovation, and builds trust with stakeholders.
If you are making technology or data investments, now is the time to consider all your data risks. Accelerate value and reduce risk at the same time.
KPMG brings cyber, risk, data, and regulatory expertise, from the boardroom to all levels of your organisation. We can assess your current data risk posture, prioritise practical improvements, and help you build a resilient, trusted data foundation unlocking the full potential of your business.
Ready to deploy generative AI, advanced data analytics or transform your business for scale?
Don’t let your data derail it all – reach out to our team today to see how we can help you on your data risk journey to ensure you stay compliant with the regulations, avoid risks and use data to create value.
