-: In just the last few years,
we have experienced a global pandemic,
a full-scale war in Europe,
and now, the widespread availability of generative AI.
Looking ahead, we see massive climate risks
looming on the horizon.
(upbeat music continues)
The question is, does your company have the capabilities
to manage financial, geopolitical, technological,
operational, human, and climate risks
that are bigger, more complex,
and more interconnected than ever before?
(upbeat music continues)
To thrive in this environment,
companies need a new risk management paradigm
that goes far beyond the traditional approach
to measuring, controlling, and reporting risk.
-: The way to create competitive advantage
is by embedding risk management
into how you operate your company.
By combining distributed human processes
with automated controls, companies can make
the risk function work like an immune system,
detecting threats in real time, and issuing rapid responses.
BCG has found that top-performing companies
which we call future built, share common attributes
that improve their resilience,
and give them significant advantages in managing risk.
(upbeat music continues)
For example, future-built companies employ
agile operating models that can strengthen collaboration
between risk and business functions.
Future-built companies also leverage the power of AI
as well as modern tech and data platforms
to improve their ability to identify,
assess, and manage risks.
-: By empowering the risk function to support in growing,
steering, and protecting the company,
organisations can make better-informed decisions
on risk versus return, enhancing the long-term ability
to thrive even in the most stressful scenarios,
and assess the opportunities
to capture competitive advantage.
(bright music)