As emerging technology increasingly influences business strategies and operations, many risk professionals are struggling to keep pace with the associated risks, according to a report by Marsh and RIMS.
In the 15th annual Excellence in Risk Management survey, 59% of respondents said their organization is currently using or exploring the use of IoT systems, 47% are using or exploring the use of artificial intelligence, and 24% are using or exploring the use of blockchain. However, only 14% strongly believe they have a clear process in place for addressing disruptive technology risks, and almost half could not even say if there was a clear process at all.
Risk professionals also need to develop a broader understanding of what new technologies can do—when asked what it means for their organization to be “digital,” a majority cited operational enhancements like improving the delivery of goods and services or automating core processes, rather than growth initiatives like finding new ways of doing business or interacting with customers.
While risk managers do not need to be tech experts, the report recommends that they stay informed about new technologies so they can better assess the potential impact of these advances on their organization.