Risk managers often overlook the potential impact of disruptive technologies, a report by Marsh and the Risk and Insurance Management Society (RIMS) says.

The annual Excellence in Risk Management report finds an apparent lack of awareness on the likely take-up of technologies including telematics, sensors, the Internet of Things, smart buildings and robotics.

When presented with 13 common disruptive technologies, 24% of respondents say their organisations do not use or plan to use any.

About 60% do not conduct risk assessments around disruptive technologies, despite the impact they can have on an organisation’s strategy, model and risk profile.

“Today’s disruptive technologies will soon be – and in many cases already are – the norm for doing business,” Marsh US Client Executive Leader and report co-author Brian Elowe said.

“Such lack of understanding and attention being paid to the risks is alarming.

“Organisations cannot fully realise the rewards of using today’s innovative technology if the risks are not fully understood and managed.”

The report notes other industry studies have found 90% of companies are either using or evaluating the Internet of Things, and many respondents to the Marsh and RIMS survey may be underestimating the pace of change.

Impediments to understanding disruptive technology risks include modelling issues and priority given to other areas, while the report says a focus on cyber risk may at times obscure other technology concerns.

Recommendations include investing in data and analytics that can be effectively used in risk assessment, and seeking out education and collaboration opportunities, including with external experts.

The 14th annual report is based on more than 700 responses to an online survey and a series of focus groups with risk executives in January and February.

Findings were released at the recent RIMS conference in the US.