Corporate executives see strategic risks as a result of technological changes — from big data and cloud computing to social media — according to a global Deloitte survey in 2013.
Deloitte queried more than 300 executives, risk managers and board members — 81 percent said their strategic-management focus has evolved with technology. Their companies have at least $1 billion in revenue.
Their key strategic concerns are no longer in human resources or innovation. “…companies are making a deliberate effort to improve their strategic risk management capabilities and performance,” according to the study.
To protect company value, their new tech concerns:
— Social media (47 percent)
— Data mining and analytics (44 percent)
— Mobile applications (40 percent)
— Cloud computing (38 percent)
— Cyber attacks – 36 percent
Why? Information and negative opinions are more difficult to manage. Forty percent cited reputation risk.
The executives think they’re progressing in this regard, but almost 40 percent said more needs to be accomplished.
Four risk categories
Deloitte identified four risk categories:
1. Strategic risks are risks that affect or are created by an organization’s business strategy and strategic objectives.
2. Operational risks are major risks that affect an organization’s ability to execute its strategic plan.
3. Financial risks include areas such as financial reporting, valuation, market, liquidity, and credit risks.
4. Compliance risks relate to legal and regulatory compliance.
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“Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted.”