Brian Elowe, Marsh’s U.S. Client Executive Leader, reviews the key findings from the 14th annual Excellence in Risk Management report, published jointly by Marsh and RIMS. He sees a gap between the use of ‘disruptive technologies’ and the understanding of the risks that come with it.
Mr. Elowe, who co-authored the report, begins by recognizing examples of ‘disruptive technologies’ such as the Internet of Things (IoT), wearable technologies, nanotechnologies or biotechnologies.
The Excellence in Risk Management report identifies a lack of awareness among risk professionals on existing and emerging technologies. It also found that despite the impact disruptive technology can have on an organization’s business strategy, model, and risk profile, a majority of respondents said they do not conduct risk assessments around disruptive technologies.
While 24% of respondents to the underlying survey said they do not plan to use disruptive technologies, other studies suggest 90% of companies plan to do so.
According to Mr. Elowe, risk managers can do more to help their organizations understand the impact of disruptive technologies. He suggests that risk managers get interdisciplinary teams together to raise awareness of disruptive technologies, and conduct ‘risk assessments’ to understand related risks.
Mr. Elowe warns of significant implications from disruptive technologies. He poses a question regarding driverless vehicles and related exposures: who owns the liability should something go wrong: the car owner, the manufacturer, or the firm that wrote the car’s software algorithm? He says “disruptive technologies’ are changing the risk profile for many organizations.”