Integrated Risk Management drives risk mitigation change in an organization by allowing companies to get a clearer view of where their vulnerabilities are so they can make more informed business decisions. To learn more about how companies are using IRM 4.0 technologies, Sphera commissioned its first IRM survey and the results were eye-opening.
Sphera partnered with the National Business Research Institute (NBRI) earlier this year to conduct an IRM survey designed to get more insights on how companies view IRM 4.0’s capabilities, and how they use and plan to use it in their business initiatives.
What jumped out to us most was that while most companies say they are proactive when it comes to risk vs. taking a reactive approach to it, the percentage of companies that are taking a predictive approach to risk is still relatively low at only 12%. That small number is especially surprising when you realize that most respondents in the survey agree that IRM increases workplace safety and believe it increases risk mitigation.
Integrated Risk Management 4.0 (IRM 4.0) is a state-of-the-art innovative approach to risk mitigation that allows companies to get a bird’s-eye view of their risk exposure. The intersection of process, progress and performance, IRM 4.0 lets organizations harness the data that they collect from a host of sources, including sensors, to get an enhanced look at their levels of risk throughout the organization. Whether it’s related to safety, productivity or sustainability, IRM helps companies achieve risk-mitigation capabilities that were not previously possible.
IRM 4.0 is a relatively new Sphera innovation that many organizations are just now learning about. So why is it called IRM 4.0? The number follows a risk progression where IRM 1.0 focused on compliance, 2.0 added risk mitigation, 3.0 included sustainability, and 4.0 advances predictive and prescriptive capabilities. How? Through advanced software solutions and Industrial Internet of Things technology, among other things, which allows companies to harness that influx of data, learn from it and get a bird’s eye view of their risk areas.
Most of the 181 respondents said they believe IRM is a valuable tool to improve productivity, prevent maintenance disruptions and provide a real-time view of risk.
Still, barriers continue to exist for companies looking to incorporate IRM into their risk mitigation strategies: “Leadership management buy-in is a big challenge,” said Scott Lehmann, Sphera’s vice president of product management for Operational Risk Management. It “may be that senior leadership is paying lip service to it, but not really investing.”
Download the full report “Unlocking the Path to Digital Transformation” to see more results from the survey.