Leaders Confront Tech-Enabled Reputational Risks
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Techno-Revolution
53% of survey respondents say technology enablers and disrupters such as social media, mobile tech and big data could threaten their established business models. -
Biggest Tech-Based Threats to Organizational Business Models
Social media: 47%, Data mining and analytics: 44%, Mobile apps: 40%, Cloud computing: 38%, Cyber-attacks: 36% -
Organizational Shift
91% say their organization has changed business strategies since these technologies began to emerge. -
Risk Factors
81% say their companies now explicitly manage strategic risk, as opposed to limiting their focus to operational, financial and compliance risk. -
How Organizations are Changing Approaches to Strategic Risk
Increasing frequency and budget for monitoring it: 52%, Starting continuous monitoring and managing of this risk: 43%, Increasing number of executives assigned to this risk: 38% -
Passing Grade
61% believe their current programs are performing at least adequately in supporting the development and execution of business strategy. -
Critical Driver
40% say that company reputation is a risk area that has the most impact on their business strategy in 2013, while only 26% cited reputation as a key risk area in 2010. -
Fiscal Curves
27% say economic risk has the biggest impact on business strategy, which is about the same as 2010. -
What Risks Will Have Biggest Impact on Business Strategy in 2016?
Economic trends: 29%, Business model: 26%, Reputation and competition: 24% -
High-Level Focus
67% say that the CEO, board or board risk committee oversees the management of strategic risk.
For today's organizations, the overwhelming impact of social media, mobile, the cloud and big fata have created a whole new—and foreboding—category of risk, according to a recent global survey from Deloitte Touche Tohmatsu Limited. Joining the more tried-and-true risk drivers, such as operational, financial and compliance risk, is the potential for crippling reputational damage. And companies are pointing to social media as a major make-or-break driver of their word-of-mouth standing among customers. "This is a natural reaction to recent high-profile reputational crises, as well as the speed of digital and social media and the potential loss of control that accompanies it," says Henry Ristuccia, Deloitte's global leader of governance, risk and compliance programs. "[Damaging news] goes to a wider audience more easily, and its record is stored digitally longer." Other tech-created concerns include the transformative power of apps in the cloud, and, of course, the ever-present threat of a cyber-attack. An estimated 300 executives worldwide took part in the research. For more about the survey, click here.