Page 22 - Deconstructing risk
P. 22

Risks resulting from
digitalization
and new
technologies

A relative latecomer to the digital party, the
industry now needs wise heads to ensure it
harnesses new technology safely and securely

Technology continues to alter            growing concerns – some unique to              Cyber-security is
         the business landscape and      construction and others prevalent           something that is constantly
         change operations across        across all industries.                      on the agenda. We continue
the value chain. While the majority of                                               to be vigilant and keep
survey participants see innovation          Executives identify “overreliance        up to date with the latest
as a necessity to survive, the           on/failure of critical IT systems” as       technologies
construction industry has remained       the top risk within this megatrend,
slow to integrate digital practices.     ranking it fifth for the industry overall.                 —Major Australian contractor
                                         The risk ranks lower in Latin America
   “This is an industry where            and CEEMEA than in all other
technology moves at a much slower        regions, where it ranked among the
pace than others,” says ACS Group’s      top ten – possibly reflecting the use
García Altozano. Flat growth has         of more advanced technology in
led to a lack of collaboration and       developed markets. Otherwise,
minimal knowledge-sharing, which         there is little commonality among
are entrenching silos in an already      regions. North America is focused
fragmented industry. Yet construction    on security issues, while the
is showing signs of digital progress,    UK and Europe are concerned
and rising investment in research and    about potential malfunctions and
development is bringing significant      overreliance on technology.
changes to construction methods.
                                            “Liabilities arising out of the
   The top ten risk scores in this       widespread use of Building
megatrend are clustered tightly          Information Modeling, visualization,
together, indicating that respondents    etc,” ranks second, another
don’t yet understand the complexities    reminder of the pros and cons that
of technology risk, and likely have      come with emerging technologies.
not yet singled out the particular       “Third-party security vulnerability,
threats to their business or ranked      digital supply chain resilience” and
them by importance. This doesn’t         “increased security threat from
mean that digital risks aren’t a high    cyber-attacks and data privacy
priority: four of the top ten risks for  breaches” take third and fourth
the construction industry fall under     positions respectively, indicating
this megatrend. And that’s not a         that executives understand the
surprise. Construction is experiencing   security lapses that technology
a much-needed digital revolution, and    and supply chains bring. As Dean
disruptors such as 3D printing are       Chapman, risk management
widespread. While it’s easy to focus     executive in Willis Towers Watson’s
on the upside of digital efficiencies,   Cyber Risk team says: “Business
our participants reveal tangible and     reliance on IT functions grows

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