A new study conducted by Forrester Consulting and commissioned by Dataminr, a leading AI company, has revealed that many midsize to large enterprises are insufficiently prepared to manage enterprise risks effectively. The study, titled “Constant Disruption Is The New Status Quo,” surveyed 500 risk leaders from North America, Europe, and APAC regions to evaluate the state of Enterprise Risk Management (ERM) across industries.
The research revealed that organisations face significant organisational, strategic, and technological barriers when trying to implement an effective ERM strategy. Moreover, nearly 70% of respondents reported that their organisations experienced at least two separate critical risk events in the past year. Over 40% of respondents faced at least three events, and nearly 20% suffered six or more incidents.
According to Jason Edelboim, President and COO of Dataminr, “following the unprecedented events of the past three years, this research illustrates that now, more than ever, it is crucial for businesses to have a system in place to discover and manage major physical and cyber risk events.” He added that “these findings have been incredibly valuable to help demonstrate the utility of Dataminr’s real-time alerts—ultimately giving clients an earlier line of sight into high-impact events and emerging risks that could impact their organisations.”
The survey found that 70% of respondents believed that optimised, real-time alerting would have helped them significantly or totally reduce the harm of the most serious or disruptive events their organisation faced last year. However, at this time, only 56% of respondents indicated they don’t have real-time alerting solutions in place. Nonetheless, 62% plan to implement or expand their use of such tools, and 54% plan to increase investment over the next 12 months.
Forrester Consulting identified four key findings from the research:
- Many risk leaders are taking too narrow a view of the systemic risks their organisations face.
- Risk strategies have significantly advanced over the past few years, but still have a long way to go.
- Cybersecurity and real-time alerting capabilities will be a major area of focus going forward.
- Successful ERM implementations are driven by aligned leadership, vision and technology.
The survey also found that just 36% of respondents have a C-suite champion leading risk management today. Moreover, only 18% of respondents reported that their current ERM strategies are effective or very effective across all five capabilities surveyed, including identifying, evaluating, monitoring, responding to, and communicating about risk.
Participants in the survey were decision makers in physical security and security operations, cyber/information security, business continuity, human resources and employee experience, corporate communications, and supply chain roles.
The study underscores the clear and pressing need for real-time physical and cyber threat alerts for effective enterprise risk management and business resilience. To learn more about the study, Constant Disruption is The New Status Quo, commissioned by Dataminr, visit here.