- Financial risk ranked as the top risk facing businesses in 2023
- 86% of self-identified ‘Leaders’ budget for additional risk-related technology compared to 67% in 2022
- 22% of respondents report their risk management program is viewed with the highest priority in their organization, compared to 12% last year
- 62% of risk managers plan to connect risk data from other systems compared to 48% in 2022
CHICAGO | 28th April 2023: Leading risk, safety, and insurance software firm Origami Risk has issued its second annual State of Risk report. The report highlights that risk managers in the US and beyond are increasingly investigating ways to address the emergence of more complex and interconnected risks.
Published ahead of this year’s RISKWORLD® conference in Atlanta, the report also shows that financial risk has catapulted to the top of their risk agenda, overtaking cyber and operational risk. This, in a year characterized by financial turmoil, inflation and fears of recession, is a marked change from the 2022 report, in which cyber ranked first, followed by operational and then financial risk.
Based on the responses to a survey, conducted in November 2022, the report finds that a majority of risk and safety managers (62%) are planning to connect their existing risk data across different systems, a significant shift from the previous year (47%). This steady increase supports indications that risk and safety professionals are seeking to strengthen interdependencies between risk and organizational strategic objectives. This connection of complex, interconnected risks through a risk-aware culture and technology is in line with a move toward the enterprise-wide integration of risk, often referred to as Integrated Risk Management (IRM). Interviews conducted for the report confirmed that the push to connect more data was being done in an effort to better manage increasingly complex risk in a dynamic risk landscape that can no longer be adequately addressed using traditional, siloed approaches.
To further underpin these findings, the research shows that while 86% of ‘Leaders’ are already setting aside investment in their budgets for greater connectivity and smarter risk technology (in the face of global cutbacks on IT spend), a majority of ‘Laggards’ are not. Despite making recent headlines, investment in Artificial Intelligence (AI) and machine learning were not cited as a priority by two-thirds of respondents.
Earne Bentley, President – Risk at Origami Risk stated:
“A more complex, interconnected risk landscape requires that all functions dealing with risk ‘level up’ to meet rapidly emerging and evolving challenges. To do this, risk managers must invest in ever more sophisticated, real-time analysis and insight, as well as data connectivity that gives them a holistic view of their organizational risks. Standing still is no longer an option.”
Origami’s report takes the perspective of what it categorizes as risk management ‘Leaders’ and ‘Laggards’, with survey respondents self-identifying based on their firms’ current activities. In 2023, the gap between ‘Leaders’ and ‘Laggards’ is widening, with ‘Leaders’ maturing rapidly and ‘Laggards’ falling further behind as they haven’t the investment, or stakeholder buy-in, to level up their own programs.
One of the biggest factors differentiating the ‘Leaders’ from the ‘Laggards’ is an investment in technology that enables risk managers to take a unified response to risk and produce more integrated, actionable risk intelligence. According to the report, the profession is, as a whole, feeling the pressure to do more. Survey data supports that risk and safety professionals will either find the tools and successfully align teams to support this approach or risk falling behind. This year’s State of Risk report suggests that risk and safety professionals have the unique opportunity to act now and influence successful outcomes for their organizations.
For further information on Origami Risk please contact:
Kirsty Plank, Full Circle Communications
M +44 (0)7799178687
T + 44 (0)20 7265 7887
E kplank@fullcirclecomms.co.uk
Notes to Editors
Origami Risk provides truly integrated SaaS solutions that simplify risk, insurance, compliance, and safety management. Origami delivers its highly configurable RMIS, GRC, EHS, and healthcare risk management solutions from a secure, scalable platform that includes tools for centralizing data, automating critical workflows, and providing insights into risk and safety initiatives. A singular focus on client success underlies Origami’s approach to developing, implementing, and supporting their innovative, award-winning software.
Visit origamirisk.com or contact us at info@origamirisk.com to learn more.