Are you ready for the new technology that will change our world, again?
It’s not that long since we were dismissing the Internet of Things as something very much "next generation." But, as you will see from Deloitte’s collection of articles, many organizations are already starting to deploy related technologies. Wired magazine also offers a good take in an older piece.
The New York Times provided some consumer-related examples in this post. And Texas Instruments' web page has a broader view these days, mentioning building and home automation, smart cities, smart manufacturing, wearables, healthcare and automotive. Even AT&T is getting into the act, connecting a host of new cars to the Internet through in-auto WiFi.
At the same time, technology referred to as Machine Learning (see this from the founder of Sun Microsystems) will be putting many jobs at risk, including analysis and decision-making. If that's not enough, the IMF has weighed in on the topic with a piece called Toil and Technology.
Is Your Organization Ready for Uncertainty?
Is your organization open to the possibilities — the new universe of potential products and services, efficiencies in operations, and insights into the market? Or do you wait and follow the market leader, running the risk of being left in their dust?
Do you have the capabilities to understand and assess the risks as well as the opportunities?
Do your strategic planning and risk management processes allow you to identify, assess and evaluate all the effects of what might be around the corner? Or do you have one group of people assessing potential opportunity and another, totally separate, assessing downside risk?
How can isolated opportunity and downside risk processes get you where you need to go, making intelligent decisions and optimizing outcomes?
Weighing the Positive and Negative
When you look forward — whether at the horizon or just a few feet in front of you — several situations and events are possible and each has a combination of positive and negative effects.
Intelligent decision-making means understanding all these possibilities and considering them together before making an informed decision. It is not sufficient to simply net off the positive and negative, as a. they may occur at different times, and b. their effects may be felt in different ways, such as a potentially positive effect on profits, but a negative potential effect on cash flow and liquidity. The negative effect may be outside acceptable ranges.
With these new technologies disrupting our world, every organization needs to question whether it has the capability to evaluate them and determine how and when to start deploying them.
COSO ERM and ISO 31000 are under review and updates are expected in the next year or so. I hope that they both move towards providing guidance on risk-intelligent and informed decision-making where all the potential effects of uncertainty are considered, rather than guiding us on the silo of risk management.
Are you ready?
I welcome your comments.