LRQA has published new guidance for businesses navigating an ever-changing risk management landscape, revealing the ways risk can be turned into advantage.
The report, Risk by Numbers: Quantifying Risk, Revealing Opportunity, explores how leading organisations across industries are transforming their approach to risk management - turning it from a reactive process into a strategic driver of trust, transparency and performance.
Drawing on global data, expert commentary and proprietary intelligence from LRQA’s EiQ supply chain intelligence software, which analyses over 85 million audit data points across 200+ regions, the report highlights how interconnected risks - from cyber threats to climate shocks and ESG controversies - are reshaping the global business landscape.
Ian Spauling, CEO for LRQA, said:
“Risk doesn’t exist in isolation. It’s a connected ecosystem that spans cybersecurity, sustainability, supply chains and reputation. Businesses that connect these dots are moving faster, recovering quicker and building stronger brands in the process.”
The cost of inaction vs. the value of connected risk
Companies across a wide range of sectors are under increasing scrutiny from regulators, investors and consumers on how they manage risk across complex, multi-tier supply chains.
In the report, Professor Bizhan Pourkomailian, Director of Global Food Safety, Restaurant and Distribution at McDonald’s, warns of the consequences of failing to manage risks - noting that it only takes seconds to destroy a reputation, especially one that’s built on trust: “Safe food has always been our promise, and it’s one we cannot waver on at any cost. LRQA has a unique way of connecting the dots – identifying risks in other industries and showing how they relate to food. The issues may look different on the surface, but the principles are the same, and that perspective is essential to keep in mind.”
Ramesh Panavalli, Head of Responsible Sourcing & Human Rights at Holland & Barratt, notes that while compliance is key, it’s also about looking back to the raw materials and where products can be ethically sourced: “We look at audits, we look at comprehensive risk, but some of those measures are static. EiQ has helped us be proactive rather than reactive.”
In the energy and renewables sector, LRQA is using technology to redefine how risk management is delivered. Through the deployment of virtual reality glasses, inspectors can now stream live data from offshore yards or remote construction sites directly to technical experts worldwide, enabling real-time collaboration while reducing travel emissions, accelerating construction schedules, and cutting risks earlier in the project lifecycle.
Despite growing recognition of the need for joined-up risk management, many organisations continue to handle cyber threats, ESG compliance, operational disruptions and supply chain vulnerabilities in isolation - managed by separate teams, systems and providers.
When internal teams operate in silos, with ESG in one corner, marketing in another, audit in a third, the organisation can end up saying three different things to three different audiences. Closing that loop isn’t just about protecting reputation - it builds stakeholder trust and unlocks measurable value.
The path forward
To aid businesses looking to transform risk into strategic advantage, Risk by Numbers introduces LRQA’s Five-Point Framework:
- Spot the signals – by mapping extended supply chains and the risk ecosystem
- Connect the data – integrate findings into a single risk view
- Act decisively – develop playbooks for rapid, cross-functional decision-making
- Measure and improve – track performance against both lagging and leading indicators
- Communicate with integrity – ensure external reporting matches internal realities
By treating risk as a connected ecosystem, leaders can convert volatility into foresight, compliance into confidence and risk management into advantage.