15 Trends Reshaping Business Risk Management Strategies

As the business world evolves, so too do the challenges and threats organizations must prepare for. Recent and emerging trends, such as technological advancements, geopolitical shifts and climate change, are compelling companies to reassess their approaches to risk mitigation and resilience.

Here, 15 Newsweek Expert Forum members explore the key trends shaping the world of risk management. Read on for their insights on these trends and how businesses can adapt to effectively navigate the evolving challenges of the years ahead.

1. Elevating Strategic Communication Skills as Risk Management Tools

One emerging trend in business risk management is the elevation of strategic communications from a perceived soft skill to a critical risk management tool. As misinformation and brand reputation increasingly impact business outcomes, companies must adapt by investing in communication and earned media as key components of smart risk management. Reputation drives revenue. - Shama Hyder, Zen Media

2. Addressing Talent Shortages

I see more and more companies incorporate the need to address talent shortages in their risk management philosophy. For many years, it was just an "HR issue," but now it is way more than that. - Krisztina Veres, Veres Career Consulting

3. Using AI to Detect Types of Risk Monitoring

Artificial intelligence is among the most important developments. Today AI and machine learning can be harnessed to detect all types of risk monitoring. With customized programs, managers can better understand normal patterns and ranges in shoplifting, cyberattacks and employee attendance, among other risk areas. This can allow leaders to focus efforts on AI-detected flashpoints to protect their firms. - Peter Marber, Aperture Investors

4. Integrating ERM Tech Stacks Into GRC Systems

Integrate enterprise risk management (ERM) technology stacks into governance, risk and compliance (GRC) systems. Transform ERM from a purely financial governance tool into a comprehensive platform that encompasses IT, third-party and GRC procedures. A GRC platform can manage policies, conduct risk assessments, identify regulatory compliance gaps, manage incidents and automate internal audits. - Britton Bloch, Navy Federal

5. Focusing on Mental Health and Work-Life Balance

The increasing focus on mental health and work-life balance in the workplace needs to be a part of any company's risk management strategies. Businesses need to recognize the risks associated with mental health issues. Every plan should contain strategies to create a supportive work environment, wellness programs and leadership training to promote mental wellness in the workplace. - Gergo Vari, Lensa

6. Educating Employees on Signs of Security Risks

Every employee in every organization is now in the role of risk management. One of the top trends is employers doubling down on efforts to educate employees about the signs of security risks, how to report security risks and how to escalate suspected security breaches. Risk ruins businesses in a matter of moments, and employers and employees will become more diligent with training. - Karen Mangia, The Engineered Innovation Group

7. Using Predictive Modeling

Predictive modeling is a means of leveraging AI to assess behavioral data for risk prediction. It is a trend that moves risk management from reactive to proactive, enabling businesses to predict concerns or issues based on human behavior patterns. Businesses can adapt by integrating advanced analytics into processes of risk assessment and training team members to interpret these insights. - Dr. Kira Graves, Kira Graves Consulting

8. Integrating AI and Data Analytics

One emerging trend is the integration of AI and data analytics. Utilizing these technologies allows for real-time risk assessment, predictive analysis and proactive decision making. Businesses will need to adapt by investing in AI tools, enhancing data security and training teams to interpret and act on insights generated, thereby creating a more agile and responsive risk management framework. - Anna Yusim, MD, Yusim Psychiatry, Consulting & Executive Coaching

9. Leveraging AI-Driven Predictive Analytics

One trend is the integration of AI-driven predictive analytics. This approach harnesses big data and machine learning to forecast potential risks, allowing companies to prepare proactively and accurately. For example, IBM's integration of AI in risk management has significantly enhanced forecasting accuracy. To adapt, businesses must invest in AI capabilities and data analytics expertise. - Joseph Soares, IBPROM Corp.

10. Utilizing 'Pay Per Success'

We are utilizing a trend called "pay per success," which means that we pay our team based on their performance. For instance, our team manages our pay-per-click ads, so their pay is determined by how much they spend, which in turn is controlled by the return on ad spend. This approach benefits both parties involved and ensures a win-win situation. - Tammy Sons, Tn Nursery

11. Evolving to Dynamic Resilience Planning

Many businesses are evolving from standard risk management practices to dynamic resilience planning using artificial intelligence to enhance cognitive decision-making capabilities. This emerging trend allows business leaders to analyze scenarios to predict rapid responses. COVID-era vulnerabilities in supply chains, remote work and cybersecurity have highlighted the need for businesses to adapt. - Lillian Gregory, The 4D Unicorn LLC

12. Focusing on Long-Tail Risks

The book The Black Swan by Nassim Nicholas Taleb has influenced many risk managers to not simply look at high-probability Gaussian risks but also long-tail risks that could seriously threaten the company and the entire sector. At the very least, long-tail risks should entail some discussions and possibly ways to counteract each threat. - Zain Jaffer, Zain Ventures

13. Understanding Risks on All Sides

I advocate for an enterprise risk management approach to looking at risk. In order to mitigate risks, you first have to understand them. That takes creating a register to identify the known risks and then ranking their likelihood and severity of impact. You have to discuss the "cost" of inaction as well, and then rank your priorities so you can mitigate the most pressing risks first. - Brian Katz, Safer School Solutions

14. Considering All Possibilities

World cultures, processes and systems are rapidly changing. Old systems and ways of working are collapsing as new technologies and ideals are rapidly emerging. In turbulent times, the "black swan" event is not as unique and rare as it used to be. Consider all possibilities, even the ones we once thought would never happen. - Margie Kiesel, Isidore Partners

15. Exploring the Risks Associated With AI

With AI furthering the evolution of business software and efficiency, it's crucial that your business stays updated on current associated risks. Always be learning how new integrations and software can affect your business, as well as your industry. By understanding how these things could have a negative impact, your business can better plan how to prepare in a worst-case scenario. - Will Erlandson, Relevance.com