Three in four risk managers have ‘failure to innovate’ on their risk register
Most corporate risk managers (73%) in Asia-Pacific have ‘failure to innovate’ or ‘disruption risk’ on their risk register.
This was a key finding of the StrategicRISK survey, which sought to understand how risk officers in the region are managing the threat posed by disruption (see graphs, below).
The figure came as no surprise to Greg McCoy, former managing director of Lockton Asia-Pacific.
He said: “The fear factor around disruptive innovation is huge, and it shouldn’t be. It’s predominantly beneficial.
“The ability to leverage Big Data and analytics to develop an integrated view of customer activities and business operations will provide competitive differentiation to companies across industries.”
McCoy said risk managers were concerned about the uncertainty of outcomes and the pace of change caused by disruptive innovation.
“You have to understand the cross-sectoral nature of disruptive innovation,” he said. “The expanse and the impact that these innovations can have across not only your business model, but your customers’, your partners’ and your supply chains’ business models, can be enormous.
“The biggest challenge as a risk manager is not necessarily to manage that risk, it’s more about identifying what are the implications and repercussions of it and constantly revising your risk- retention and appetite strategies to manage that change. Risk management should be a partner to innovation, not an inhibitor.”