Understand Trends

A risk trend is a long-term pattern that is currently taking place and that could contribute to amplifying risks and/or altering the relationship between them.  Unlike risks, trends are occurring with certainty and can have both positive and negative consequences. Trends can alter how risks evolve and interrelate, and they inform efforts at risk mitigation.

The structural trends that drive uncertainty stem from multiple sources. Regulation will continue to broaden and deepen as public sentiment becomes less tolerant of any appearance of preventable errors and inappropriate business practices. Simultaneously, customers’ demands and expectations change as technology and new business models emerge and evolve.  Unless your organisation acts now to prepare for these longer-term changes, you may be overwhelmed by new requirements and developments.