Disconnect in Risk Preparedness Highlighted by Origami Risk Report

A recent report by Origami Risk reveals a significant disparity between organizational confidence in risk preparedness and actual risk management practices. The 2023 State of Risk Report, surveying 240 risk professionals, indicates that while 82% of respondents feel moderately prepared for unexpected crises, concrete actions to mitigate risks are lagging. Key measures such as prioritizing risk management, integrating risk data, and updating supply chains have notably declined. The report suggests that this overconfidence could lead to underpreparedness in navigating today’s dynamic risk landscape.

Key Findings and Recommendations:

1. Perceived vs. Actual Preparedness: Despite high self-assessments of risk readiness, actual risk management activities have decreased. For example, the priority placed on risk management has dropped from 7.5 to 6.69 on a 10-point scale.

2. Risk Technology Investments: Nearly half of the respondents did not invest in risk technology in 2023, a significant increase from the previous year.

3. Supply Chain Updates: 52% of respondents did not update their supply chain strategies, despite ongoing global disruptions.

4. Actionable Insights: The report recommends organizations balance proactive and strategic risk management, apply proven risk mitigation approaches to emerging risks, and ensure rigorous assessments and contingency planning.

Conclusion:
The report underscores the importance of aligning perceived preparedness with tangible actions to enhance resilience against potential disruptions.