Managing risk in the digital age
I have written articles recently about how the management of risk is changing as we digitise our world. For an example, click here.
The
digital age is well and truly upon us. It pervades business and our personal
lives, and provides us with many benefits. It also presents us with risks.Risk
management remains a qualitative management practice in many industries,
supported to varying degrees by quantitative analysis. Generally, the more
strategic the risk, the more management decision-making tends towards being
qualitative, using techniques such as scenario planning and good business
acumen. This is set to change. The need to qualitatively review risk will
remain, but what we now see is a ‘tipping point’ at which the digitisation of
business presents an opportunity to combine qualitative reviews with a
data-driven approach to managing risk. Those who are pursuing this path are
already seeing tangible benefits.






