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Rapid Advances in Technology Outpacing Risk Management: Marsh/RIMS

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Annual Survey Finds Unease Around Managing Disruptive Technology Risks

Emerging technologies continue to rapidly change the way businesses
operate and interact with customers, yet risk management processes are
not keeping pace with the associated risks, according to a new report
published today by Marsh, a global leader in insurance broking and
innovative risk management solutions, and RIMS, the risk
management society™.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180416005269/en/

The 15th
Annual Excellence in Risk Management
report delves into risk
professionals' knowledge of and role in managing technology innovation
such as artificial intelligence (AI), blockchain, and the Internet of
Things (IoT). According to the findings, 59% of respondents said their
organizations are currently using or exploring the use of IoT systems;
47% are using or exploring the use of AI; and 24% are using or exploring
the use of blockchain. Despite the growth, only 14% said they strongly
believe they have a clear process in place for addressing disruptive
technology risks. Nearly half could not say there was a clear process at
all.

Furthermore, the report found that most risk professionals would benefit
from viewing digital technology from a balanced lens. When asked what it
means for their organization to be "digital", a majority cited
operational improvements, such as automating core processes, more so
than growth initiatives, including new ways of doing business and
interacting with their customers.

By ignoring how digitization is changing the way companies interact with
their customers, risk professionals cannot fully understand the changing
risk profiles of their organizations, the report notes.

"Emerging technologies like AI, blockchain, and IoT are fast becoming
the new normal, yet risk management is not keeping up," said Brian
Elowe, chief client officer, North America, Marsh. "Only by asking
questions and understanding the underlying technologies and their uses
throughout the organization can risk professionals truly appreciate
their risks and respond accordingly."

Carol Fox, vice president, strategic initiatives, RIMS, added: "Risk
management professionals can add tremendous value and insight,
supporting organizations' ability to make strategic decisions regarding
disruptive technology. Engaging in innovation that impacts our
companies, customers, industries, and even the practice of risk
management itself is a giant first step. While risk professionals do not
need to be ‘experts' in the intricacies of these technologies, they can
certainly advance the performance benefits that each new technology
brings."

Other highlights from the report include:

  • The majority of respondents said they are most interested in
    technology that enables them to identify emerging risks (57%) and
    enhance data security (57%).
  • Of the respondents whose organizations have cross-functional risk
    committees, 31% said disruptive technologies are discussed at every
    meeting.
  • 40% of respondents said they would consider switching insurers and
    other advisors based on their ability to provide innovations in the
    claims area.

The Excellence report, Maintaining Relevance Amid Technology
Disruption,
is based on 450 responses to an online survey and a
series of focus groups with leading risk executives in January and
February 2018.

Findings from the report were released today at the RIMS 2018 Annual
Conference & Exhibition.

About Marsh

A global leader in insurance broking and innovative risk management
solutions, Marsh's
30,000 colleagues advise individual and commercial clients of all sizes
in over 130 countries. Marsh is a wholly owned subsidiary of Marsh
& McLennan Companies
(NYSE:MMC), the leading global professional
services firm in the areas of risk, strategy and people. With annual
revenue over US$14 billion and nearly 65,000 colleagues worldwide, MMC
helps clients navigate an increasingly dynamic and complex environment
through four market-leading firms. In addition to Marsh, MMC is the
parent company of Guy
Carpenter
, Mercer,
and Oliver
Wyman
. Follow Marsh on Twitter @MarshGlobal;
LinkedIn;
Facebook;
and YouTube,
or subscribe to BRINK.

About RIMS

As the preeminent organization dedicated to educating, engaging and
advocating for the global risk community, RIMS, the risk
management society™, is a not-for-profit organization representing more
than 3,500 corporate, industrial, service, nonprofit, charitable and
government entities throughout the world. RIMS has a membership of
approximately 11,000 risk practitioners who are located in more than 60
countries. For more information about the Society's world-leading risk
management content, networking, professional development and
certification opportunities, visit www.RIMS.org.

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