The Changing Operating Environment and Potential Role Changes in Enterprise Risk Management in the Fourth Industrial Revolution

This chapter maps out the potential changes in enterprise risk management in the fourth industrial revolution to capture the broader information, and to analyse it to gain hindsight, insights, and foresights. Furthermore, this chapter explores the combination of skills needed in the enterprise risk management function. Given that nothing is guaranteed in the volatile, uncertain, complex, and ambiguous world, this chapter proposes a structure for risk governance in the fourth industrial revolution. This structure contains new roles that are necessary to manage enterprise-wide risk in an enterprise. We assert that enterprise risk management in the fourth industrial revolution is a function of blended skills. Rather than relying on risk managers and specialists who traditionally come from the insurance, finance, or engineering backgrounds, there is a need for introducing scenario planners, behavioural scientists, data scientists, RPA managers, and data architects in the enterprise risk decision-making.