When it comes to emerging risk, how do you get ahead of the curve and apply good data to decisions? A Risk Leadership Network member presented their 3-step approach to developing an emerging risk deep-dive during a recent member-only collaboration.
1. Research
The first, and most familiar, step in the process is horizon scanning, which many risk leaders will already be doing.
If you're just setting out on this journey, identifying data sources of good quality is paramount. Furthermore, it may be useful to organise sources into a tiered framework, clearly defining what data should be prioritised for analysis.
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Data sources:
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2. Analysis
Analysis is the crucial stage that adds value and makes your research worthwhile. Without it, all the information you have collected is simply that: information.
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Where did this approach come from? A number of Risk Leadership Network's member organisations had raised emerging risk reporting as a key priority for their team. We facilitated a virtual member meeting for these members and arranged for an experienced risk professional to present their approach. Members were able to ask questions about the approach, and then had a wider discussion with other participants about some of the ideas raised. |
The key, according to the member, is marrying up the external and internal data you have, in order to extract the future "so what" for the business, and in turn, the "therefore". So, how do you proceed?
It may not be an option for every organisation, but it can be hugely beneficial to hire an internal intelligence analyst to undertake this work.
While it may seem like a significant investment, an in-house person has the ability to truly understand the business, integrate SMEs, and even become an SME. They are a force multiplier for the organisation."
Risk Leadership Network member
You can even pair an intelligence analyst with a research officer, optimising both skillsets. The research officer performs their role first, identifying data sources (both internal and external) and assessing reliability. Research can be very time-consuming to do well, hence the value of a dedicated role.
If you aren't able to hire a data scientist, research officer or other similar roles immediately, it's worth including them in your resourcing plan for the next 18 months, so you can push the value of these capabilities in your next conversation with leadership and increase your chances of securing funding.
3. Reporting
When preparing deep-dive reports on emerging risks, it is crucial to always contextualise and interrogate questions that really matter to the business.
The member shared their formula to deliver a high-impact and high-quality emerging risk report.
What's next?
We'll continue to facilitate peer-to-peer collaboration in line with the specific priorities of our members. We work exclusively for our members, but here are a few highlights from recent collaborations on emerging risks that we've recently shared with non-members:
- Case study: Running an emerging risk workshop for executives
- Top emerging risk categories of 2024
- Bespoke benchmark: Emerging risk - risk leader approaches
- Peer approach: incorporating emerging trends into risk reporting
To find out more about getting involved in upcoming collaborations with experienced peers, request an exploratory call, or explore membership here.
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