Failure to innovate and meet customer needs identified as high risk to business

27 Jul 2017
This year's
identifies disruptive technologies and increasing competition as amongst the greatest opportunities and challengers for business. The results can help directors:
• align their approach to risk with executives
• understand key risk exposures that they may not yet be aware of.

The report has gathered insights from more than 500 c-suite and senior level experts across 55 countries on their perceptions of risk.

Boards have a responsibility to set the correct tone from a culture and risk appetite perspective across their organisations. Risk taking is a fundamental part of growing a successful business and companies shouldn’t seek to eliminate risk but to manage it, by ensuring that their risk appetite is aligned to the company’s values and culture.

In a world where brands and reputations are increasingly fragile, the pressing need is to reinvent and adapt business models as technologies and customer demands change and evolve.
found that nearly 9 out of 10 organisations recognise that risk management should focus on value creation and not simply risk avoidance, yet fewer than 1 in 5 are taking sufficient action in this space.
Figure 3 above from Deloitte's taking aim at value report demonstrates 87% of c-suite and board members interviewed by Deloitte recognise the importance of value creation in mitigating risk
Figure 4 above from Deloitte's taking aim at value report highlights that improving customer loyalty is a top priority for managing risk in organisations, amongst exploiting the power of new technologies.
Of the 300 executives surveyed from major companies around the world,
identified technology enablers and disrupters, such as social, mobile, and big data, could threaten established business models. 91% of companies surveyed have changed their business strategies since those technologies began to emerge.
In Deloitte’s report, Phil Maxwell, Director Enterprise Risk Management of The Coca-Cola Company said, “Being able to harness data could increase confidence that you’re looking at the right types of data and risks”.

The Deloitte report continues to find the “Majority of surveyed companies (53%) believe technology enablers and disrupters are emerging that won’t just affect their business results but could actually threaten their established business models. The top technology threats are social media (47%), data mining and analytics (44%), mobile applications (40%), cloud computing (38%) and cyber attacks (36%),” as demonstrated in figure 4 below.

Komosion offers unique and combined experience in Customer Experience Design, Strategy and Consulting and Digital Know-How. By understanding customer needs, triggers and emotions, we are able to help our clients prioritise, innovate and achieve competitive advantage.