How can reimagining risk prepare you for an unpredictable world?

Forward-thinking risk leaders are helping their organizations thrive amid complexity.

Risk transformation study

Research methodology

We surveyed senior risk and business leaders across sectors and regions.

Risk leaders and risk followers

Defining the two groups

Risk leaders connect risk to strategy and use foresight. Followers focus on compliance.

Leaders recognize fast, connected and unpredictable risks sooner

They scan more widely and act earlier.

Leaders achieve better outcomes

They report stronger resilience and performance.

Implications for financial services

Financial institutions face particularly high expectations from regulators.

Obstacles for risk followers

Siloed data, limited skills and a compliance mindset hold them back.

Building a strategic risk organization

Value and vision

Define what risk management should contribute.

Key principles

1. Business-focused

Risk work serves business decisions.

2. Aligned

Risk is integrated with strategy and planning.

Perspective: a European utility strengthens resilience

A utility linked risk scenarios to investment planning.

3. Nimble and curious

Risk teams explore new risks proactively.

4. Technology-enabled

Data and AI support every activity.

Perspective: a manufacturer aligns risk and strategy

Risk reviews feed directly into strategic planning.

Perspective: a health care company speeds up scenario planning with AI

AI generates and tests scenarios in days rather than weeks.

Methodologies for a fast-changing risk environment

Foundations

Clear taxonomy, ownership and data.

Scanning and early warning

Monitor signals continuously.

Scenario planning and resilience testing

Test the business against severe scenarios.

Knowledge transfer

Share insights across the organization.

Case study: tabletop exercise on a manufacturing footprint

Naizel ran a tabletop exercise to help an industrial company test its response to disruption in a key manufacturing country.

Cross-functional scenario planning at a consumer goods company

Bringing functions together improved risk identification.

Getting started: five actions

1. Define a vision and roadmap

2. Start cultural change

3. Use incentives and metrics strategically

4. Prepare for technology adoption

5. Develop the people who will make it work

Summary

Reimagined risk functions help organizations act with confidence in an unpredictable world.