Forrester Study Reveals Businesses Are Insufficiently Prepared to Manage Enterprise RisksForrester Study Reveals Businesses Are Insufficiently Prepared to Manage Enterprise Risks
Study underscores the clear and pressing need for real-time physical and cyber threat alerts for effective enterprise risk management and business resilience.
March 9, 2023
NEW YORK, March 9, 2023 /PRNewswire/ -- Dataminr, one of the world's leading AI companies, today released a commissioned study conducted by Forrester Consulting to evaluate the state of enterprise risk management (ERM) at midsize to large enterprises across industries in the North America, Europe, and APAC regions.
Forrester surveyed 500 risk leaders to inform the commissioned study titled Constant Disruption Is The New Status Quo, and found that organizations encounter significant organizational, strategic, and technological barriers on their way to implementing an effective ERM strategy. The study also found that nearly 70% of respondents said their organizations experienced at least two separate critical risk events in the past year, while over 40% experienced at least three, and nearly 20% suffered six or more incidents.
"Following the unprecedented events of the past three years, this research illustrates that now, more than ever, it is crucial for businesses to have a system in place to discover and manage major physical and cyber risk events," said Jason Edelboim, President and COO of Dataminr. "These findings have been incredibly valuable to help demonstrate the utility of Dataminr's real-time alerts—ultimately giving clients an earlier line of sight into high-impact events and emerging risks that could impact their organizations."
The survey found that 70% of respondents believed that optimized, real-time alerting would have helped them significantly or totally reduced the harm of the most serious or disruptive events their organization faced last year. At this time, 56% of respondents indicated they don't have real-time alerting solutions in place today, but 62% plan to implement or expand their use of such tools, and 54% plan to increase investment over the next 12 months.
In the research, Forrester Consulting identified four key findings:
Many risk leaders are taking too narrow a view of the systemic risks their organizations face. Business risk will become more, not less, complicated to manage in the future, and fewer than a third of risk leaders completely agree that risks to their business can come from anywhere.
Risk strategies have significantly advanced over the past few years, but still have a long way to go. Just 36% of respondents have a C-suite champion leading risk management today.
Cybersecurity and real-time alerting capabilities will be a major area of focus going forward. Respondents were most likely to cite cyber risk tools and real-time alerting capabilities as the most critical features their next risk management platform must include.
Successful ERM implementations are driven by aligned leadership, vision and technology. Organizations with highly effective ERM strategies were 27% more likely to have a C-suite leader for ERM, compared to those from lower-maturity organizations. C-suite champions are empowered to work across organizational silos and to coordinate with other business leaders within the organization.
In addition to the above key takeaways, the survey also found that only 18% of respondents reported that their current ERM strategies are effective or very effective across all five capabilities surveyed, including identifying, evaluating, monitoring, responding to, and communicating about risk.
Forrester completed the study in Q3 2022. Participants were decision makers in physical security and security operations, cyber/information security, business continuity, human resources and employee experience, corporate communications, and supply chain roles. Questions focused on how organizations navigate risk strategies, technologies and workflows.
To learn more about the study, Constant Disruption is The New Status Quo, commissioned by Dataminr, visit here.
Dataminr delivers the earliest warnings on high impact events and critical information far in advance of other sources. Recognized as one of the world's leading AI businesses, Dataminr enables faster response, more effective risk mitigation and stronger crisis management for public and private sector organizations spanning global corporations, first responders, NGOs, and newsrooms. Most recently valued at $4.1B, Dataminr is one of New York's top private technology companies, with 800+ employees across seven global offices.
Since its founding, Dataminr has created the world's leading real-time information discovery platform, which detects digital patterns of emerging events and critical information from public data signals. Today, Dataminr's advanced AI platform performs trillions of daily computations across billions of public data inputs from over 500,000 unique public data sources. The Company has been recognized for its groundbreaking AI platform and rapid revenue growth by Forbes AI 50 and Deloitte Fast 500, and has been named to Forbes Cloud 100 for six consecutive years.
Alongside Dataminr's corporate product, Dataminr Pulse, the Company provides its First Alert product for first response to public sector organizations, including the United Nations, which relies on First Alert in over 100 countries. Dataminr for News is used by more than 650 newsrooms and over 30,000 journalists worldwide.
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