Page 60 - IRMSA Risk Report 2020

4.3.10
DISR UPTIVE TECHNOL OGIES

DUE TO A LACK OF APPRECIATION OF THE ORGANIC INVASIVE NATURE AND SCOPE OF DISRUPTIVE TECHNOLOGIES,
ORGANISATIONS MAY NOT REALISE THE IMPACT OF THIS RISK UNTIL IT IS TOO LATE TO RECOVER FROM THE
NEGATIVE COMPETITIVE CONSEQUENCES THEREOF.

SCENARIOS FLAGS RISK RANKING OVER LAST 5 YEARS

Leadership RANKING SCALE
Institutional capacity 10 9 8 7 6 5 4 3 2 1
Politics
SPRING OF HOPE
Social cohesion
National policy
FAKE IT TILL WE MAKE IT...OR NOT? Service delivery ANNUAL RANKING
Inequality 2015 2016 2017 2018 2019 2020
NOT
NOT
NOT
NOT
NOT
Economy RANKED RANKED RANKED RANKED RANKED
PERPETUAL HANGOVER
Global trends
Climate
Very few people really understand the true magnitude of this risk, thinking of it more in terms of big projects for robotic
process automation, AI, autonomous cars, etc. However, disruptive technology could be as seemingly insignificant as a
smart fridge that someone decides is a cool new value-add for the breakroom. We deal with bots, AI, Machine Learning, IOT
devices, and more, every day without realising that it is an organic, systemic, and silent invasion of our lives.

TOP 5 CHALLENGES TO ACHIEVING TOP 5 RISK TREATMENT OPTIONS AND
TARGETS OPPORTUNITIES
1. Disregard for the “organic”/ “silent” intrusion of disruptive 1. Carry out a full “risk context and maturity study” to understand and
technologies due to the incorrect view that it only manifests in determine the impact of this risk on the organisation.
large AI or digitalisation projects. 2. Incorporate “smart-tech” into risk decision making and internal audit
2. Failure by risk management teams to fully comprehend this processes.
risk and/or to incorporate new technologies into their risk 3. Complete a “disruptive technology audit” with skilled advisors.
management methodologies. 4. Upskill risk and executive teams in understanding and dealing
3. Non-recognition of the interrelationships between new effectively with potential disruptive technologies.
technologies and environmental risk, health and safety risks, ethics 5. Extend governance obligations to oversee technology beyond IT.
and compliance risks, and others.
4. Silo-thinking in organisations that limits their responses and the full
utilisation of integrated thinking to mitigate technology risks.
5. Not understanding the ethical responsibilities and secondary risk
exposures that come from disruptive technology opportunities.
FAC TS AND FIGURES

Forecast economic impact of disruptive technologies in 2025, by technology type
Source: Statistica.Com