Market Overview

Gartner Survey Says Cloud Computing Remains Top Emerging Business Risk


Latest Emerging Risks Report Reveals New Threats to Global
Enterprises as Cloud Growth Booms

Cloud computing ranks as the top risk concern for executives in risk,
audit, finance and compliance, according to the latest survey by
Gartner, Inc. While cloud computing presents organizations with novel
opportunities, a number of new risks — including cybersecurity
disclosure and General Data Protection Regulation (GDPR)
compliance — make cloud solutions susceptible to unexpected security

In Gartner's latest quarterly Emerging
Risks Report
, 110 senior executives in risk, audit, finance and
compliance at large global organizations identified cloud computing as
the top concern for the second consecutive quarter. Additional
information security risks, such as cybersecurity disclosure and GDPR
compliance, ranked among the top five concerns of the executives

The top two fast-moving, high-impact risks — those which have the
ability to cripple an organization quickly — are also related to
information security threats. Social engineering and GDPR compliance
were cited as most likely to cause the greatest enterprise damage if not
adequately addressed by risk management leaders, according to Gartner.
However, only 18 percent of the cross-functional executives surveyed
currently considered social engineering to be a significant enterprise

Executives should expect cybersecurity threats to affect organizations
in unpredictable ways. Through 2022, at least 95 percent of cloud
security failures will be the fault of the organization, according to
Gartner. As more sophisticated tactics such as social engineering are
engineered to compromise sensitive data, organizations should expand
their cybersecurity team to address evolving digital risks.

"Executives are right to expand cloud services as part of their digital
business initiatives, but they need to ensure their cloud security
strategy keeps up with this growth," said Matthew Shinkman, practice
leader at Gartner. "Leaders should start by clearly identifying their
most at-risk areas, which remain obscure to many large organization

Increased Adoption Brings New Risks

Gartner forecasts cloud computing to be a $300
billion business by 2021
, as companies increasingly adopt cloud
services to realize their desired digital business outcomes. Through the
use of cloud services, cloud computing provides the speed and agility
that digital business requires. Adopting the cloud can also result in
significant cost savings and generate new sources of revenue.

Results from Gartner's Emerging Risks Report, however, reveal that
companies continue to struggle with security. Despite record spending on
information security in the last two years, organizations have lost an
estimated $400 billion to cyber theft and fraud worldwide. As
cybersecurity events and data breaches increase, it is imperative that
organizations elevate IT security to a board-level topic and an
essential part of any solid digital business growth strategy.

"Executives should promote risk awareness throughout the organization,"
Mr. Shinkman stated. "A strong risk culture helps employees make the
right decisions and mitigates poor outcomes."

More detailed analysis is available to Gartner clients in the full
report "2Q
2018 Emerging Risks Report and Monitor

About Gartner

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