The world continues to make a digital shift and companies continue to integrate "disruptive technologies" for greater success and a competitive advantage. Wearables, artificial intelligence and use of drones are becoming commonplace. If you think these are the stuff of science fiction consider your Apple Watch, asking Alexa to play something from your playlist, the system by which Amazon serves up more of what you like or how companies can send up a drone to safely inspect a roof for maintenance assessment.
While these technologies carry a lot of power and value, they also bring associated risks. Before a company can fully integrate disruptive technologies, risk professionals need to complete a risk assessment to better understand both the risks and rewards associated with each device and how to manage it moving forward. Unfortunately, many companies are not conducting these necessary assessments and are unprepared.
According to Marsh and RIMS Excellence in Risk Management report*, more than half of companies surveyed had not conducted proper risk assessments. Areas for concern they outline include:
- Establishing effective cyber security
- Evaluating consequences to human capital, supply chain, etc.
- Evaluating legal consequences for external stakeholders
- Upgrading IT infrastructure
- Developing appropriate metrics
- Evaluating insurance coverage for applicability
Before drone usage to take an aerial view of your next work site, you may want to consider if your insurance covers this type of work. Before building an app that interfaces with your server data base, consider the additional risk due to cyber security threats. Before adding artificial intelligence to your collected data, plan a professional review of how this information could be used maliciously.
In short, as technology changes, your risk assessment should be current and thorough. At Beimdiek, we partner with companies to protect what they have worked so hard to achieve. We designed a strategic risk assessment and solution-based product that enables us to help business owners and organizations “Move the Needle”. Our proprietary ELEVATE process is designed to give employers the road map to success built on a solid foundation of one word – P.R.I.C.E.
*Source: Marsh and RIMS, Excellence in Risk Management XIV