Risks for Market & Competitive Intelligence Functions
When talking about risks within an intelligence context there are regularly two areas most dominantly mentioned: counter intelligence and the business risk NOT to entertain any serious intelligence program.
While the last should be more of a concern than a consideration the real risks in terms of counter intelligence should be handled as a legal task along with branding and licensing issues. Real risks stemming from intelligence efforts can be found in all steps of the market & competitive intelligence operation.
Market intelligence that is misinterpreted can be a real business risk as it might impact decisions made by marketers and sales staffers. Restricting access to intelligence should be the last resort to address this very real and very valid business concern. Thorough education, clear lines of responsibilities, a culture that nurtures constant exchange and discussion about intelligence topics, a strong view towards the outside, especially customers and markets could be proper answers there.
Also, if an intelligence depository, portal, document management system, CRM or collaboration tool is deployed that allows access to the intelligence in question, editing and commenting functions could help setting the intelligence into context and alert on the potential of misleading expressions and contradictions in otherwise important and accurate material.
Quality control of market intelligence should enable any organization to limit risk as well. Spot checks and an active double-loop feedback to establish quality ratings of intelligence providers, their material and other sources of intelligence might be appropriate efforts in risk control too.
Operation risks might be sudden departures of intelligence staff, especially to competing organizations, market exit of intelligence partners like consultants and intelligence providers and other unforeseen surprises like M&A activities, strategy changes or other events resulting in dramatic impact on the business intelligence operation.
Reducing the chances for some of those risks can pay long term. Picking well established and traditional intelligence partners over others, more risky ones could proof important.
In order to visualize a risk assessment more easily and to be able to communicate risks to management and stakeholders a risk management matrix cold be applied, educating decision makers about risk impact in the case of event, expressed in hours lost or cost.
Example of Risk Impact Matrix
