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Our series on PESTLE risk monitoring continues with a deeper look at "T"—Technological risk—and how it can impact organisations enterprise-wide.
The World Economic Forum, in their Global Risks Report 2017 have stated that: "The deep interconnectedness of global risks means that technological transitions can exert a multiplier effect on the risk landscape". In fact, technological risks relating to Artificial Intelligence (AI), cyber-attacks, and data fraud featured heavily in risks identified by the top 100 business leaders around the world – highlighting a growing concern over the rise of the so called ‘Fourth Industrial Revolution’.
Technological factors that can affect how businesses function, and how sustainable they are in the future, relate to existing technology as well as the development of emerging technologies. We only have to look at the huge progressions in the last few years to understand the speed at which these developments are happening, for example, the rise of hybrid and electric vehicles, the ease of contactless payments, and the importance of online social media in influencing our daily lives.
This rapid development of technology requires quick reaction by businesses in order to keep up with new trends and innovations, survive in a competitive corporate environment and increase visibility to enable more proactive, data-driven decisions.
Disruptive digital technology
Organisational processes
Expenditure
Employment
Technological factors are one of many external factors that can affect businesses in a negative way, and are an integral part of PESTLE analysis. As well as the above risks there are additional technological risks associated with supply chains such as unstable technology base, for example; when operations are in countries with less stable infrastructures can face challenges in powering/maintaining technology. Power disruptions can damage costly equipment, it may be difficult to find staff to maintain equipment, causing supply chain disruption, with associated financial and reputational damage. Increasing real-time awareness into technological and market trends allows you to respond proactively. How can you achieve better visibility into technological risk? Ensure you have a risk monitoring solution to rely on.
Designed as a cost-effective, off-the-shelf solution, LexisNexis Entity Insight helps organisations implement third-party monitoring— tailored to their specific risk considerations—to identify technological and other PESTLE risk factors across global news and data as service.
Watch for the next blog in our PESTLE risk monitoring series—Legislation
Arrange for a trial of our PESTLE risk monitoring solution, LexisNexis® Entity Insight It helps you manage third-party risk—both before and after determining financial stress scores—so you can take action, fast.