Recent data collected by the Center for Excellence in ERM at St. John’s University explored how organizations identify and react to unknowns, disruptions, and emerging risks. Although the project is still in progress, some early findings are interesting. The early highlights:
Timing matters. Only 14% of companies stated that they see these changes too early.
You still must take action. 74% of companies stated that they sometimes had the right idea (to react to the changes) but failed to execute on the idea.
Easier to say than do. 95% agreed that the key to these changes is linking the change to the business model and strategy.
Raise the risk aware culture. 95% agreed that a risk culture that encourages the entire organization to be aware of and identify emerging risks is critical.