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Building trust in cloud environments

2023 KPMG Cloud Transformation Survey

From service downtime to sensitive data loss, audit issues, and noncompliance, risks in cloud environments are broad and threaten to have serious impacts on business performance and reputation. Add to that unaddressed stakeholder concerns about cloud risks, cloud transformation programs tend to bog down before enterprises realize the full potential value that cloud can deliver. The result: Top management and line of business leaders may deprioritize larger scale cloud investments. Security, risk, and compliance owners may place limits on what data is moved to the cloud. Employees and customers may not take advantage of all the cloud-based tools and services available to them.

KPMG surveyed more than 300 senior-level cloud practitioners in the 2023 KPMG Cloud Transformation survey. Learn how your organization can take full advantage of the promise of cloud technologies by making investments to manage cloud risks across the enterprise and the transformation journey. Read about the highlights below and download the full point of view for details, key drivers, and actions leaders can take related to these findings.

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Average annual issues due to cloud risks

Question: Approximately how many times has your organization experienced a business-critical application outage, data loss, or has been identified by internal auditors, external auditors, or governement regulators in the public cloud over the past year?

Source: Renaissance Capital. Data includes IPOs and direct listings with a market cap of at least $50mm. Exclude closed-end funds, unit offerings and SPACs.

Cloud adoption and future trends

Companies are moving more data and systems to public cloud and are increasing the sensitivity of the data involved.

More business applications are moving to public clouds

Question: Months from now, approximately what percentage of all of your organization's business applications will be run in the following ways?
Source: (X) represents the number of IPOs by sector in 2Q23. Comm. Services defined as companies that fall within the media, retailing, and software and services industries. Consumer Disc. defined as companies that manufacture products and provide services that consumers purchase on a discretionary basis.

Cloud risks

Enterprises face new and legacy risks along the cloud migration journey.

Today's cloud threat landscape is broad

Question: Which of the following threats/incidents is your orgnization most concerned about today as it relates to your organization's use of cloud technologies? (multiple responses accepted)
Source: Renaissance Capital

Cloud management approaches

Early, hands-on cloud management leads to fewer incidents, with small impacts, at lower costs.

When stakeholder concerns about cloud risks are not addressed, cloud transformation programs tend to bog down before enterprises realize the full potential value that cloud can deliver.

Frameworks and standards can help set companies on the right path

Companies improve cloud risk confidence by leveraging industry standards

Companies that were most proactive about cloud security were 2x as likely to say their security is strong

Question: When considering cloud cybersecurity tools, how does your organization employ these tools? How do you expect that to change—if at all over the next 24 months?
Source: Renaissance Capital

Empowering people throughout the enterprise can be a key success factor

Enterprises with higher rates of cross-functional cooperation, employee training, and middle management engagement report greater preparedness and outcomes.

When it comes to cloud risk management, enterprises with higher rates of cross-functional cooperation, employee training, and middle manager engagement report greater preparedness and outcomes.

Operating effectively in the cloud requires enterprises to strike a careful balance between business needs and risk and compliance goals. Learn more about what senior-level cloud practitioners are saying regarding designing and implementing a leading-edge cloud operating model, including governance and risk management through the end-to-end cloud journey in our report.
Source: Renaissance Capital

KPMG recognized as a leader in risk consulting

KPMG is proud to again rank No. 1 across multiple risk advisory categories in the Source study: Perceptions of Risk Firms 2023. These categories include First Choice in Financial Risk; First Choice in Third Party Assurance; and 1st for Client Advocacy in Risk.

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