The lag in digital transformation worries Central America

Seven in ten leaders (68%) in Mexico and six in ten (61%) in Central America believe that losing or not attracting the necessary talent is the main internal risk to their organization.

However, the main internal risk for the region Central America is lagging behind in innovation and digital transformation resulting from the constant evolution of business models and the need for companies to adapt to it, reveals Mexico and Central America 2023 Risk Study by KPMG.

As for external risks, companies of Mexico and Central America The main concern is the global economic recession, followed by insecurity and the lack of rule of law, while in Central America it is a fact that new regulations could affect business or the business model.

So much about that Mexico as Central America In general, business model reconfiguration for organizations is the main consequence if business risks materialize, however, for Central America, customer loss is the main consequence. Additionally, 51% in Mexico and 46% in Central America predict that the risks that threaten the operational strategy of organizations will increase in the next three years.

54% in Mexico and 51% in central america tHe also noted that environmental, social and corporate governance (ESG) issues are becoming increasingly important, which is why they are including them in their risk management plans, with diversity and inclusion being aspects of greatest interest to organizations. Mexico (62%) and (37%) in Central America.

In Central America, the priority risk for environment, society and corporate governance (ASG) is respect for human rights.

In terms of mitigation, 44% in Mexico and 45% in Central America ensures that it has implemented risk assessment, monitoring and management processes

Seven out of ten companies in Mexico (70%) and (54%) in Central America they believe that their risk assessment provides timely information for the implementation of strategic decisions.

“Although the risk mitigation function in the case of Central America can be perceived as complex, it indicates a level of maturity and a comprehensive risk culture, which, in the long term, creates more value and is well appreciated by investors,” he says. . Arturo Carvajal, consulting partner of KPMG Panama and head of consulting for the Central America and Dominican Republic cluster.

In the next few years, it is inevitable to think about the risks associated with natural disasters, recessions and even pandemics, the report says.

The current environment is increasingly disruptive and will inevitably be influenced by regional conflicts, trade disputes and social movements that affect the structure and operations of businesses.