Operational risk trends for 2019 surveyed

Published: Monday, 20 August 2018 13:58

A survey conducted by independent research firm Verdantix has looked at the 2019 budget plans, priorities and technology preferences of 221 risk managers across the chemicals, oil and gas, mining, manufacturing, construction and transport sectors.

Key findings from the survey include:

2019 operational risk budgets

Budgets for operational risk management will increase in 2019 on average by 5 percent. Most funding comes from asset and business unit budgets – not corporate HQ. IT systems, contractor risk management and mechanical integrity will receive the largest budget increases in 2019.

Operational risk software

Barrier management, job hazard analysis and asset integrity have the highest penetration of commercial software (39 percent, 39 percent, 35 percent). For deployment, 80 percent already consider private cloud software is acceptable. Mobile apps for operational risk are the least important product characteristic.

Digital technologies for operational risk

Integrating different IT systems to improve operational risk management is the most significant technology initiative for 2019 (67 percent).

Implementing operational risk software is the second most significant (63 percent) and installing IoT digital sensors on equipment the third (59 percent).

Spending drivers

62 percent of firms will increase operational risk spend due to operational excellence programmes and 52 percent due to enterprise risk initiatives. For operational risk software, 54 percent will invest due to their CEO’s industry 4.0 strategy.

More details.