In November Deloitte surveyed more than 320 executives involved in digital asset management about their activities and risks. Most (46.5%) didn’t envisage keeping roughly the same investment levels in digital assets in the next 12 months. Similarly, 49.3% didn’t foresee much of a change in risks. For the purposes of the survey, digital assets included digital currencies, digital securities and stablecoins.
Public companies were more pessimistic than private firms regarding risk in the coming year, with 30.9% saying they expected increased risks.
When asked about the biggest regulatory compliance risks, the increasingly complex regulatory landscape was seen as by far the biggest risk (45.5%). A lack of leadership support and challenges identifying illicit digital asset usage were each only cited by 15% of executives.
Participants were also asked about how often they update their board of directors regarding digital assets. Forty-nine percent said they do not inform the board or didn’t know. Twenty-seven percent report quarterly or more frequently. That figure is a little higher for public companies (31.2%).
“Digital asset risk should be a mainstay board agenda item for any organization that actively uses digital assets in its operations,” said Tim Davis, a Deloitte Risk & Financial Advisory principal and U.S. blockchain and digital asset leader.
“The spectrum of risks linked to digital assets is broad and complex, with the capacity to impact a company’s financials, reputation and more if not properly monitored. Boards need to be assured that these risks are not just acknowledged, but are actively and effectively being managed across the enterprise.”
