Targeting a Technology Dividend in Risk Management - Doing More With Less
Risk managers in today’s disruptive and tech-driven era face a fundamental conundrum: Having to do more with less resources. As ‘People Risk’ becomes an increasingly key part of the risk discussion, we are first leading with a broader look at risk across the organization and how prepared companies are using technology to do more with less.
In our inaugural collaboration, Marsh, the Asia Pacific Risk Centre (APRC), and PARIMA, a leading professional association for risk and insurance managers, have come together to produce a new report on Targeting a Technology Dividend in Risk Management. The report analyses results from The Emerging Tech in Risk Management Survey of 2017, providing insights into how businesses plan to deploy technology in corporate risk management.
Digitizing The Risk Function Is More Imperative Than Ever
Risk management is becoming an increasingly crucial member of the business organization, as it transcends all levels of the organizations from assets, to people and activities. As firms navigate unpredictable economic headwinds, rapidly evolving technological landscapes and shifting socio-political and regulatory trends, investing in risk monitoring and mitigation strategies is becoming a higher priority item for C-suite across the organization.
As risk functions gear for the uncertainty ahead, it is crucial that they recognize the large technology dividend to be gained by leveraging three key capabilities: data, analytics, and process automation. Using these technologies, risk professionals can digitize their risk function and achieve real cost savings for their firms.
Unfortunately, risk management digitization faces several obstacles. Budgetary constraints and a lack of support from senior management mean that though the majority of risk managers today seek to leverage emerging technologies for risk management, many simply do not have the resources to do so. It seems that risk managers today have to figure out how to do more with less.
Through survey results, case examples, and commentary from industry experts, Targeting a Technology Dividend in Risk Management shows that the long-term benefits of these technologies will widely outweigh their initial costs. It is therefore crucial for risk managers to push forth with their digitization agenda and reap the rewards that new technologies can bring to their firms.
The report closes with five practical steps for deploying new technologies in the risk function.
The long-term benefits of technologies widely outweigh the initial costs, so it is crucial for risk managers to move forward with digitization amidst challenges as risk professionals and other c-suite functions have to do more with less.