Artificial Intelligence (AI), the Internet of Things (IoT), blockchain, big data – this isn’t the stuff of science fiction anymore. It’s mainstream business. And risk managers are playing a big role in managing innovation – but it might not be enough.
“Emerging technologies like AI, blockchain, and IoT are fast becoming the new normal, yet risk management is not keeping up,” says Brian Elowe, chief client officer, North America, Marsh. “Only by asking questions and understanding the underlying technologies and their uses throughout the organization can risk professionals truly appreciate their risks and respond accordingly.”
The blistering speed of technological advances is leaving risk professionals scrambling to stay relevant.
According to a new report by RIMS and Marsh, ‘Maintaining Relevance Amid Technology Disruption,’ only 14% of organisations have a clear process for addressing emerging technology risks, with nearly half admitting that there is no clear process at all.
But that doesn’t mean that businesses are failing to adopt the technologies. According to the report, 59% of organisations are currently using or looking into using IoT, 47% for AI, and 24% for blockchain.
Risk professionals are well-situated within organisations to lead cross-functional innovation strategies, but, according to the report, they’re underutilized. Only 60% of companies included in the study said they have a cross-functional risk committee. Of those without a designated, cross-functional committee, 35% said their organisations should have one.
“Risk management professionals can add tremendous value and insight, supporting organizations’ ability to make strategic decisions regarding disruptive technology,” says Carol Fox, vice president, strategic initiatives, RIMS. “Engaging in innovation that impacts our companies, customers, industries, and even the practice of risk management itself is a giant first step. While risk professionals do not need to be ‘experts’ in the intricacies of these technologies, they can certainly advance the performance benefits that each new technology brings.”
