The world is changing in fundamental ways, leading to dramatic shifts in the landscape of risks faced by businesses.
Beyond the profound health and economic uncertainty of our current moment, catastrophic events are expected to occur more frequently in the future. The digital revolution, climate change, stakeholder expectations, and geopolitical risk will play major roles.
The digital revolution has increased the availability of data, degree of connectivity, and speed at which decisions are made. Those changes offer transformational promise but also come with the potential for large-scale failure and security breaches, together with a rapid cascading of consequences. At the same time, fueled by digital connectivity and social media, the reputational damage can spark and spread quickly.
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Research article originally published by McKinsey & Co.
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