Business strategies focusing on digital transformation will need to account digital risk as a key risk, a KPMG report said on Tuesday.

The report offers insights into the dynamic nature of risk that enterprises face today and offers perspectives on digital risk and imperatives, risk management frameworks and defence mechanism and compliance measures.

According to the report, digital technologies are rapidly evolving with time so that companies create and deliver value to their customers.

"Over the past five years, digital disruptors have destroyed some businesses and this pace of disruption is accelerating, thereby making the digital space a multi-device, multi-mode, omnichannel world where quality is measured not by schedules, budgets, and defects but by user experience including both external customers as well as employees. A ’one size fits all’ strategy is no longer an option," said the report.

"A lot of steps must be taken by organisations to cope with real-time monitoring, advanced skills and expertise related to IT, and strategic information structure to the operation, development, information system, and data integration," the report noted.

Here are the key highlights of the report :

Top 3 digital risks in organisations: Operational risks, lack of skill sets and vulnerable systems

Most impacted departments by digital transformation: Operations, customer relationship management and sales and marketing.

95 percent respondents suggest that a chief digital transformation officer would play a key role in managing digital risks.

67 percent respondents consider digital risk as a key risk.

90 percent respondents believe that digital risk exposure is directly proportional to the use of digital technologies.

40 percent respondents treat digital risk as a separate risk domain.

89 percent respondents believe that less than three percent of digital transformation budget is allocated to digital risk domain.

60 percent respondents stress on the need for enhancing existing cybersecurity frameworks to address digital risks.

Atul Gupta, partner and head, IT advisory and cybersecurity leader, KPMG in India said, "Businesses today are embracing digital technologies like never before and it is the CEOs themselves who taking personal ownership of driving digital adoption across their enterprises. Though this brings in agility it also brings to the fore an important and key aspect of digital trust."