“Technological Disruption” was seen as the foremost threat looming on the horizon in the second quarter of 2016 for the risk, audit and compliance executives at leading U.S. companies recently surveyed by advisory firm CEB Inc.
Broadly defined as the “risk that rapid expansion of innovative solutions, such as drone technology or the Internet of Things, will challenge traditional business models and their operations,” this concern seems in many ways to be closely affiliated with the number two risk identified in CEB’s quarterly report: “Evolving Customer Expectations”; or in other words, potentially “not developing new customer-oriented strategies or products to accommodate customers’ rapidly changing expectations in the technology-driven economy.”
The last of the top three emerging risks involves managing vendor relationships, which is to say: “The risk of operational failures, reputation damage, and exposure to significant commercial losses and fines as a result of vendor/third-party actions.”
Other areas to be monitoring in the risk environment according to the survey include: an unpredictable political landscape unsettling global markets; malware that locks your data and extorts payment for restoring access; persistently low oil prices exacerbating the fragility of the global economy; possible supply chain disruptions; the threat of a new asset bubble materializing and then imploding with calamitous systemic shock; uncertainty around the ramifications of U.S. monetary policy; and the risk of not having adequate strategies to attract, develop, and retain the increasing millennial workforce.
Click here to view the CEB Emerging Risk Q2 2016 report.