Market Insight: The Convergence Of Physical And Digital Risk Management
Access this research
Access all EHS Software & Services content with a strategic subscription or buy this single report
Need help or have a question about this report? Contact us for assistance
Executive Summary
Firms are faced with a difficult, continual challenge: how to mitigate business risk to ensure business continuity. Business risks arising from both physical and digital sources are increasing in frequency, severity and complexity. Concurrently, physical and digital risks are becoming increasingly connected, exposing businesses that have failed to consider how risks may interlink and impact diverse business functions. Risk management strategies must evolve to counter this evolving threat, and protect operations, assets and employees. This report examines how digital and physical risks are interlinked; how they may propagate one another, to create ‘cascading risks’; and which technologies executives should consider leveraging to maintain business integrity.Physical And Digital Risks: Rethinking Outdated Risk Silos
Both Physical And Digital Risks Are Growing Independently
Physical And Digital Risks Combine In the Modern Risk Landscape
Risk Management Strategies Must Evolve To Counter Cascading Risks
Traditional Risk Management Through The Lens Of EHS
Three Actions to Build Resilience Against Intertwined Physical And Digital Risks
Figure 2. Physical Risks From Digital Critical Events
Figure 3. Factors influencing Risk Severity
About the Authors
Connor Taylor
Principal Analyst
Connor is a Principal Analyst at Verdantix. He focuses on delivering research to help senior executives navigate decarbonization decision-making and build effective strategies...
View Profile
Rodolphe d’Arjuzon
Chief Product Officer and Co-Founder
Rodolphe co-founded Verdantix in 2008. As Chief Product Officer, he leads the firm’s research strategy and intellectual agenda. With over 20 years of experience in techn...
View ProfileOther related content
In the 2026 Smart Innovators: Video Analytics For Safety report, Verdantix benchmarked 10 video analytics vendors. We analysed how their capabilities across PPE detection, behavi...
15 April, 2026
The education sector is one of the largest employers in the global economy. In the US alone, the education sector employs around seven million workers, according to the US Bureau...
10 April, 2026
In the regional and industry-specific breakdown of the 2025 Verdantix global corporate survey on EHS budgets, priorities and tech preferences, respondents in the oil and gas sect...
09 April, 2026
For time-pressured EHS leaders, the challenge is not whether AI matters, but how to assess readiness, prioritise use cases, and avoid costly missteps. In this webinar, we’ll examin...
07 April, 2026
Day-to-day operations in the food and beverage industry are being disrupted both by shifting consumer tastes and by increasing regulatory scrutiny of the industry’s supply chains –...
27 March, 2026
In the regional and industry-specific breakdown of the 2025 Verdantix global corporate survey on EHS budgets, priorities and tech preferences, respondents in the vehicle manufact...
24 March, 2026