Why Organizations Are Acquiring Risk-Sensing Tech
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Why Organizations Are Acquiring Risk-Sensing Tech
Preparing for the worst comes with the territory for CIOs and IT leaders, and risk-sensing technology has the potential to anticipate market shifts. -
Wide Usage
80% of C-level execs say their organization uses risk-sensing tools. -
Keeping Pace
49% believe that data leveraging has emerged as the key way to mitigate the risk of being left behind. -
Top Business Areas for Risk-Sensing Tools
Finance: 70%, Compliance: 66%, Operations: 65%, Strategies: 57% -
Cautionary Developments, Part I
35% say regulatory requirements currently present the greatest risk concerns, while 32% cite reputational risks and 29% say it's the pace of innovation. -
Cautionary Developments, Part II
30% say the pace of innovation and regulatory requirements will emerge as the greatest risk concerns three years from now, while 25% cite talent-related risks and 24% say it is reputational risks. -
Well Staffed
65% say they employ people with adequate knowledge to both monitor and analyze risk-sensing data and make it actionable for business. -
External Input
40% agree that outside parties—detached from internal management's agendas and biases—can analyze risks with greater objectivity and expertise than insiders. -
Best Practices: Identify the Risks to be Monitored
Work with senior leaders and stakeholders to target potential industry disruptors, metrics to track and thresholds that will trigger communication, escalation and countermeasures. -
Best Practices: Define the Required Risk-Sensing Elements
These would include relevant data extracts from structured and unstructured sources. Make sure you incorporate visualization tools that present these in a comprehensible form. -
Best Practices: Configure Your Platform
It must enrich data/findings by connecting them to trends impacting your sector, related industries, the economy, technology and regulatory compliance, among others.
With innovation comes risk. Because of this, many organizations invest heavily in staffers who specialize in anticipating and preparing for "the worst that can happen." And, today, the majority of tech departments work with these teams to acquire and deploy what are called "risk-sensing" tools, according to a recent survey from Deloitte Touche Tohmatsu Limited. The resulting report, titled "Risk Sensing: The (evolving) State of the Art," indicates that a significant number of C-level executives believe that their organization must leverage data to prevent the risk of getting left behind market/technology shifts that impact competitive standing. They're also keenly interested in tools which can flag potential issues related to finance, compliance, operations and strategies. In many cases, they're inviting external consultants to offer their own assessments of potentially troubling situations, seeking an outside perspective that isn't influenced by internal agendas and biases. "Sensing emerging strategic risks can position an organization not only to avoid and mitigate risks but also to generate risk-powered performance," according to the report. "The latter creates value from risk by moving early to address nascent market movements and customer needs, harness benefits from emerging technologies and block competitors' efforts to gain first-mover advantage." The report includes best practices, and we've adapted some of them here. A total of 155 C-level execs took part in the research, which was conducted by Forbes Insights.