To stay ahead, leading companies are using advanced data and analytics to identify and mitigate risks as they emerge.
OK, so the business world probably won’t be conquering time travel anytime soon, but it’s a familiar frustration for senior executives amid ever-increasing unpredictability: “How do I plan for what I can’t see?”
That is why more and more companies are focusing on ways to identify and plan for risks right as they emerge, leveraging advanced data and analytics (D&A) to more rapidly model scenarios and responses, and get ahead of the next “mission impossible.” Waiting and watching and reacting after the fact can be crippling, as the global pandemic so clearly demonstrated.
And the risk portfolio is expanding. As our world becomes more and more interconnected—technologically, financially, economically, socially, and environmentally—it also becomes vulnerable to multiplying risks, some of them unprecedented.
To respond and mitigate those risks, companies have new opportunities to harness advances in areas such as artificial intelligence (AI), intelligent forecasting, and data modeling and visualization. These evolving new data tools and capabilities can establish the framework for an iterative enterprise risk management (ERM) approach that can rapidly model potential threats—before or as they emerge, rather than after they have fully materialized.