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Most Execs Say Operational Risk Events Impact Shareholder Value, But Few Use Advanced Technologies to Manage ItNEW YORK, May 20, 2019 /PRNewswire/ -- The majority (79.2%) of C-suite and other executives recently polled by Deloitte say significant operational risk events impact shareholder value over the long term. Yet, just 39.5% of polled executives leverage advanced analytics to manage operational risk and only 6% use emerging technologies like cognitive computing and machine learning to do so. In fact, 38.9% of polled executives say their organizations' risk teams offer only backward-looking analyses and reports on operational risk, leveraging no advanced analytics or emerging technologies. "We've all seen disruptions and risk events that have damaged an organization's peak performance, reputation and — in some instances — their valuations for years," said Nitish Idnani, Deloitte Risk and Financial Advisory principal, Deloitte & Touche LLP. "Operational risk management crises are driving leadership demands for more and closer-to-real time predictable, actionable insights. The good news is recent advancements in predictive risk intelligence tools and technologies make it more possible than ever before to manage operational risk across the enterprise—consistently, not episodically." Forty percent of executives' organizations are currently making improvements to their operational risk management programs. Another 24.4% plan to improve their programs in the next 12 months according to our poll. "Use of emerging technologies in operational risk management isn't something all organizations are pursuing at this point. But, we're encouraged to see use of prevalidated, preclassified operational risk management data leveraged by risk teams as a basis for both advanced analytics efforts and presentations to senior leadership," said Monica O'Reilly, Deloitte Risk and Financial Advisory principal and Regulatory and Operations Risk leader, Deloitte & Touche LLP. "Establishing a reliable, sustainable platform with a high-quality data store ready for application of advanced analytics is an important first step to advancing operational risk management programs." Questions to ask of operational risk management programs include:
Respondents were split as to the biggest operational risk management program challenges awaiting them in the year ahead among process inefficiencies (19.3%), lack of adequate technologies (18.1%), change management concerns (17.8%), poor data quality (15.8%) and lack of predictive capabilities (10.2%). About the online poll About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms. View original content to download multimedia:http://www.prnewswire.com/news-releases/most-execs-say-operational-risk-events-impact-shareholder-value-but-few-use-advanced-technologies-to-manage-it-300852543.html SOURCE Deloitte |