Understanding the New Rules of Risk
Understanding the New Rules of Risk
New technologies and an array of digital systems are affecting the risk landscape, so it’s critical for IT and business leaders to keep up with security trends.
In Cognition
Cognitive technologies increasingly augment human decision making. Artificial intelligence (AI) and smart systems will assist, and at times even replace, human-led risk management.
A Matter of Control
A sensor-enabled, hyper-connected environment will force organizations to deploy pervasive real-time controls as part of their products, services and business models.
Eye on Behavior
Advances in behavioral sciences will fuel efforts to understand risk perceptions, influence risk behaviors and improve risk-related decision making.
Resilience Is Real
100% risk prevention is impossible. So, invest in vigilance (detecting risk events as they happen) and resilience (containing and reducing the impact of risk events).
Risk Transfer
Insurance, contracts and novel financial instruments will gain favor for managing cyber-attacks, climate change, geopolitical risks, terrorism, business disruptions and more.
Regulation Follows Innovation
The marketplace now rewards organizations that take on strategic, high-risk innovations—even if they fall outside the scope of existing regulations.
Risky Performance
As risks become more measurable and tangible, organizations will be better able to determine an accurate upside value for risk and encourage an appropriate level of risk-taking.
Network View
As businesses engage more deeply with a large number of external stakeholders, including “crowds,” a more collaborative approach to identifying, managing and reducing risks will emerge.
Disruption Is the New Normal
Emerging technologies, business model transformations and ecosystem changes will force executives to make significant strategic choices to drive organizational success.
Taking a Proactive Approach
Organizations must navigate a hyper-connected world dominated by mobile devices, social media and evolving expectations. A proactive approach is critical.
