Few organizations can accurately obtain an early view of unexpected events finds new survey
- Published: Thursday, 28 January 2021 09:43
During a time where business resilience and innovation is core to organizational survival, a new study commissioned by Dataminr has found that only 29 percent of companies feel confident that they have technologies to accurately obtain an early view of unexpected events.
Called ‘Risk In A Real-Time World’ and conducted by Forrester Consulting, the study surveyed 410 global risk and compliance decision-makers across the US, UK, Australia, and New Zealand to evaluate current risk management priorities and practices, and how real-time information is used in risk management and crisis response.
The study analyzes the survey findings, and identifies inflexible tooling, lack of cross-functional collaboration, issues with confidence and company culture as stand-out challenges for global enterprises in their crisis preparedness response and planning. Two key challenges identified were siloed processes and inflexible technology stacks. In fact, nearly seven in 10 (68 percent) enterprise risk decision-makers find access to real-time information to be siloed.
Is risk management being treated as a team sport?
Over half (52 percent) of global risk and compliance decision-makers find cross-functional collaboration challenging, and 50 percent find process efficiency challenging when it comes to operationalizing real-time information.
Findings also suggest that real-time information is not reaching everyone who needs it when it comes to important response activities, such as informing crisis communications (31 percent), impacting response plans as events unfold (30 percent) and assessing impact (30 percent). Further, the research found that only 33 percent of organizations included the corporate communications department and 43 percent the human resources/employee experience group in their crisis response team(s).
The advantage of informational accuracy, visibility and scalability
The research identifies the importance for businesses to have a holistic understanding of the meaning of ‘real-time information’; however, 75 percent of organizations were found to be using the term to describe data from today or older. Only 16 percent believed ‘real-time information’ to be data from the past few seconds or minutes. The study shows key distinctions between those with an accurate understanding of real-time information and those with an inaccurate understanding below, specifically:
- Accuracy: Those with an accurate understanding expect a competitive advantage from a real-time alerting solution (48 percent vs. 34 percent who misunderstand real-time information);
- Visibility: 58 percent of those with accurate understandings expect enhanced visibility as opposed to 44 percent with an inaccurate understanding of real-time information;
- Scalability: Those with an accurate understanding of real-time information outpace their counterparts when it comes to expecting scalability (57 percent to 42 percent, respectively).
The new road to business resilience
Over four-fifths (82 percent) of enterprise risk professionals believe having visibility and insights around real-time information is more necessary today than ever before. In turn, 44 percent of enterprises plan to either implement or expand the implementation of a ‘real-time’ alerting platform solution that helps risk professionals do their job. Specifically, nearly 8 in 10 (77 percent) risk decision-makers plan to leverage more risk management solutions.