Operational Risk Survey 2018: Budgets, Priorities & Tech Preferences

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Executive Summary

This report provides senior managers responsible for risk management at industrial assets with a benchmark of  2019 budgets, priorities and technology preferences. The survey data also supports decisions of technology vendors and services firms with value propositions targeted at the operational risk management opportunity. This inaugural annual survey of operations leaders was conducted via telephone interviews in May and June 2018 with 221 respondents mostly located in developed economies. In 2019, budgets for operational risk management will increase by approximately 5% in the countries and industries covered in the survey. Technology spending will see the largest increase in 2019 as firms seek to succeed with operational excellence programmes by investing in software, systems integration and equipment-attached sensors. Operational risk managers generally express a positive view on the role of digital technology in their activities.

Table of contents

Operational Risk Survey 2018: Budgets, Priorities & Tech Preferences
Multi-Region Risk Survey Delivers Granular Insight
Engagement Of Operations Decision-Makers In Digital Projects Is Significant
Operational Risk Spending Is Set For A Solid Increase In 2019

Strategic Factors Dominate Operational Risk Technology Priorities
Many Operational Risk Software Use Cases Have Achieved Convincing Penetration Rates
Evaluation Criteria For Operational Risk Software Reflects Enduring Industry Concerns
Strategic Issues Shape The Potential For Operational Risk Management Strategy
Multiple Barriers To Extracting Value From Operational Risk Technologies Ring Alarm Bells

Table of figures

Figure 1. Revenue Of Survey Respondents’ Firms 
Figure 2. Industry Categorisation Of Respondents’ Firms 
Figure 3. Geographic Location Of Respondents
Figure 4. Risk Categorisation Of Respondents’ Firms
Figure 5. View Of Operational Risk Decision-Makers On The Role Of Technology
Figure 6. Responsibility Of Respondents In Operational Risk Technology Projects 
Figure 7. Funding Sources For Operational Risk Management
Figure 8. Allocation Of Spending On Operational Risk Management Initiatives
Figure 9. Change In Operational Risk Management Spend In 2019 Compared To 2018
Figure 10. Change In Spend Across Operational Risk Management Categories In 2019
Figure 11. Penetration Of Operational Risk Information Management Systems In 2018 
Figure 12. Penetration Of Commercial Operational Risk Management Software In 2018 
Figure 13. Evaluation Criteria For Operational Risk Software Vendors 
Figure 14. Evaluation Of Operational Risk Software
Figure 15. Acceptability Of Different Operational Risk Software Deployment Options
Figure 16. Significance Of Digital Technologies For Operational Risk By 2020
Figure 17. Change In Drivers For Increasing Spend On Operational Risk Initiatives
Figure 18. Factors Triggering Operational Risk Software Implementation
Figure 19. Multiple Barriers To Extracting Value From Operational Risk Technologies

Organisations mentioned


About the authors

David Metcalfe

David is the CEO of Verdantix and co-founded the firm in 2008. Based on his 20 years of experience in technology strategy and research roles he provides guidance on digital strategies to C-level executives at technology providers, partners at private equity firms and function heads at large corporations. His current focus is on helping clients understand their market opportunity tied to ESG investment trends and their impact on corporate sustainability strategies. During his 12 years running Verdantix – including 4 leading the New York office – he has helped dozens of clients grow their businesses through fund raising, acquisitions and international growth. David was previously SVP Research at Forrester and Head of Analysis & Forecasting at BT. He holds a PhD from Cambridge University and also worked as a Research Associate at the Harvard Business School.

Sebastian Winter

Industry Analyst
Sebastian is an Industry Analyst in the Verdantix Operational Excellence practice. His research agenda covers digital twins for industrial facilities, asset management software, and connected worker platforms. Sebastian also delivers market strategy, voice of the customer, thought leadership, CDD, and digital strategy advisory pieces. Prior to joining Verdantix, Sebastian worked for Trucost, a division of S&P Global, and held positions in China, Brunei and Kenya. Sebastian holds an MSc Environmental Technology from Imperial College London.

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