Aug 15, 2018   SOURCE: BusinessWire

Verdantix Operational Risk Survey: Digital Technology Essential For 40% of Firms In 2019

A survey conducted by independent research firm Verdantix has found that 40% of 221 operations managers at industrial firms believe digital technology is essential for operational risk management. The survey covers the 2019 budget plans, priorities and technology preferences of risk managers across chemicals, oil and gas, mining, manufacturing, construction and transport.

“Enterprise risk programmes and CEO industry 4.0 strategies push managers of industrial assets to improve risk management with digital technologies” stated David Metcalfe, Verdantix CEO. “There is a huge opportunity to improve production and reduce risk with digital risk models which integrate operational risk software with real-time data from industrial IT systems and IoT digital sensors.”

The report, Operational Risk Survey 2018: Budgets, Priorities & Tech Preferences, contains valuable insights for executives offering products and services for operational risk management. Key findings:

2019 Operational Risk Budgets

Budgets for operational risk management will increase in 2019 on average by 5%. Most funding comes from asset and business unit budgets – not corporate HQ. IT systems, contractor risk management and mechanical integrity will receive the largest budget increases in 2019.

Operational Risk Software

Barrier management, job hazard analysis and asset integrity have the highest penetration of commercial software (39%, 39%, 35%). For deployment, 80% already consider private cloud software is acceptable. Mobile apps for operational risk are the least important product characteristic.

Digital Technologies For Operational Risk

Integrating different IT systems to improve operational risk management is the most significant technology initiative for 2019 (67%). Implementing operational risk software is the second most significant (63%) and installing IoT digital sensors on equipment the third (59%).

Spending Drivers 2020

62% of firms will increase operational risk spend due to operational excellence programmes and 52% due to enterprise risk initiatives. For operational risk software, 54% will invest due to their CEO’s industry 4.0 strategy.

“The Verdantix global survey of 221 operations managers is positive news for vendors such as DevonWay, eVision, Petrotechnics, RAP International, RiskPoynt and VisiumKMS who target this market with operational risk software products” commented Malavika Tohani, Principal Analyst. “Service providers such as Accenture, AECOM, DuPont Sustainable Solutions and Ramboll are also set to benefit from strategic deals for operational risk systems integration.”