Market Insight: The Convergence Of Physical And Digital Risk Management
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Executive Summary
Firms are faced with a difficult, continual challenge: how to mitigate business risk to ensure business continuity. Business risks arising from both physical and digital sources are increasing in frequency, severity and complexity. Concurrently, physical and digital risks are becoming increasingly connected, exposing businesses that have failed to consider how risks may interlink and impact diverse business functions. Risk management strategies must evolve to counter this evolving threat, and protect operations, assets and employees. This report examines how digital and physical risks are interlinked; how they may propagate one another, to create ‘cascading risks’; and which technologies executives should consider leveraging to maintain business integrity.Physical And Digital Risks: Rethinking Outdated Risk Silos
Both Physical And Digital Risks Are Growing Independently
Physical And Digital Risks Combine In the Modern Risk Landscape
Risk Management Strategies Must Evolve To Counter Cascading Risks
Traditional Risk Management Through The Lens Of EHS
Three Actions to Build Resilience Against Intertwined Physical And Digital Risks
Figure 2. Physical Risks From Digital Critical Events
Figure 3. Factors influencing Risk Severity
About the Authors
Connor Taylor
Principal Analyst
Connor is a Principal Analyst at Verdantix. He focuses on delivering research to help senior executives navigate decarbonization decision-making and build effective strategies...
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Rodolphe d’Arjuzon
Chief Product Officer and Co-Founder
Rodolphe co-founded Verdantix in 2008. As Chief Product Officer, he leads the firm’s research strategy and intellectual agenda. With over 20 years of experience in techn...
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