PART 4
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Organizations aren’t likely to unwind their vast — and growing — network of relationships or complex, multi-layered supply chains. Economies and countries will remain heavily intertwined. New risks will emerge, with the ability to influence other, longstanding risks.
Recent increase in the number of individual risks identified and mitigated
Ongoing market or industry expansion
Surge in online activity
M&A activity
RiskN – Exponential Risk isn’t a temporary state or a moment in time: it represents a permanent shift in the nature of risk. Like the transition from agricultural to industrial and analog to digital, this is a fundamental revolution in how global systems work and interact
This is the challenge facing companies and countries: The traditional approach to risk management — effective up to this point — is likely not sufficient to build resilience going forward.
For leaders and decision-makers, this creates new priorities.
Tear down risk silos; seek expert data/analysis to learn more about priority risks when making decisions; drive interconnected risk planning.
Incorporate assessments of the organization’s risk domains and mitigation efforts, when evaluating decisions from a multi-stakeholder perspective.
Tailor policy and regulatory decisions to the new landscape, and design services and systems for resilience in the Era of Exponential Risk.
The next frontier in the Era of RiskN – Exponential Risk is the integration of massive and diverse data sets, made simple and visible by predictive analytics that help to anticipate the effects of emerging threats, identify vulnerabilities, spot and seize opportunities, and support lasting competitive advantage.
Building more agile and resilient organizations, economies, and communities — capable of anticipating and withstanding interconnected risk — is now essential to resilience. And while this new era presents a fresh set of challenges, leaders are already rising to the occasion. The expertise is there; the data and tools are there. We can meet the challenge of interconnected risk and thrive.
