The future of risk

Cognitive technologies augment human decision-making

Driven by developments in artificial intelligence (AI) and easy access to huge amounts of data, smart systems will assist, and at times even replace, human-led risk management.

Controls become pervasive

In a sensor-enabled, hyper-connected environment, organizations will deploy pervasive controls as part of their products, services, and business models to monitor and manage risk in real time.

Behavioral science informs risk insights

Advances in behavioral sciences will fuel efforts to understand risk perceptions, influence risk behaviors, and improve risk-related decision-making.

Vigilance and resilience complement prevention as leading practices

Organizations are realizing that 100 percent risk prevention is not feasible, so investment in vigilance (detecting risk events as they happen) and resilience (containing and reducing the impact of risk events) will increase.

Risk transfer broadens in scope and application

Risk transfer instruments, such as insurance, contracts, and novel financial instruments, will increasingly be used by organizations to protect them from a wider range of risks – cyberattacks, climate change, geopolitical risks, terrorism, business disruptions, and more.

Innovation leads, regulation follows

The marketplace will reward organizations that take on strategic, high-risk innovations—even if they fall outside the scope of existing regulations.

Risk becomes a performance enabler

As risks become more measurable and tangible, organizations will be better able to determine an accurate upside value for risk—and encourage an appropriate level of risk-taking.

The networked economy demands collective risk management

As businesses engage more deeply with a large number of external stakeholders, including “crowds,” they will rely more heavily on them to identify, manage, and reduce risks together.

Disruption dominates the executive agenda

The constant threat of disruption resulting from emerging technologies, business model transformations, and ecosystem changes will force executives to make significant strategic choices to drive organizational success.

Reputation risks accelerate and amplify

To survive in a hyper-connected world dominated by mobile devices, social media, and evolving expectations from society, leaders will proactively address accelerated, amplified risks to their organizations’ reputations.