Where We’re Headed…
Smart Risk Monitoring
The number of devices connected to the internet is expected to triple by 2020. In a trend often referred to as the “next industrial revolution,” the Internet of Things will change the way that we make decisions by connecting everyday technologies such as phones, tablets, equipment, cars, card readers, and wearable devices. How we make sense of all of this information is becoming increasingly critical.
Advanced Risk Modeling
Managers and decision-makers continually seek to better understand the risks associated with their businesses and industries. The best way to do this is to systematically and comprehensively consider the metrics and indicators associated with risk. Predictive risk modeling relies on the use of historical data, coupled with experience and insights of risk managers to identify which risks to own, to mitigate, and which ones to transfer.
Big Data Analytics
Almost 90% of the world’s data has been created in the past 2 years. This data comes from a variety of sources such as geo-sensors, phone calls, emails, photographs, blogs, and social media, to name a few. This type of data is unique because it is non-uniform, changing by the second, and because there is so much of it. For risk analysts, this data has the potential to provide a wealth of insight on emergent trends and threats. It may even help us see further into the future.
Innovation in Risk
Insurers claim that the majority of clients are severely underinsured; that they do not understand the true and total risk to which they are exposed. This deficiency in risk perception can be attributed to poor awareness of risk and associated threats. There exists a need to promote enhanced risk perception to improve risk understanding, communication, management and response. Innovation of new risk tools and assessment methods may help to alleviate this gap.
Creating Resilient Communities
Risk is everyone’s problem. Ultimately, losses following a failure event are impacted by the socio-technical environment in which they occur. Communities and governments are challenged with the design and implementation of policies, programs, and systems that help local communities cope with threats ranging from terrorist attacks to natural disasters. By working with such entities to promote risk awareness and resiliency, risk can be mitigated.