Risk Management in Industry 4.0 Adoption: A Systematic Literature Review

Abstract

Industry 4.0 (I4.0), with its significant economic potential, is driving a radical transformation of industrial processes through the integration of emerging digital technologies, such as the Internet of Things (IoT), Cyber-Physical Systems (CPS), Big Data analytics, and Cloud Computing. These interconnected technologies enable increased automation, enhanced data-driven decision-making and real-time process optimization. However, this new industrial paradigm also introduces increased system complexity and the emergence of novel risks related to interconnection, heightened automation, and data dependency. Effective management of these risks is crucial for a successful transition to I4.0. Despite the recognized importance of this topic for both researchers and industry practitioners, the literature lacks a comprehensive and critical analysis of existing work. This article addresses this gap by conducting a systematic literature review of 39 relevant scientific publications indexed in Scopus and Web of Science, published between 2011 and 2024. Our analysis reveals the multifaceted nature of these risks, ranging from cybersecurity threats to socio-economic and environmental challenges. While traditional methods like Failure Mode and Effects Analysis (FMEA) and Multi-Criteria Decision Making (MCDM) approaches remain valuable, they are insufficient in addressing the inherent interconnection and uncertainty characteristic of Industry 4.0. This study highlights the need for holistic and integrated risk management approaches that combine established methods with innovative techniques, leveraging Artificial Intelligence (AI) and Big Data analytics. Such an approach enables proactive and sustainable risk management tailored to the specific needs of diverse companies and sectors. Future research is needed to develop robust, empirically validated frameworks for navigating the complex risks associated with I4.0 adoption.

Classification JEL: G32, M11, D81, L21 

Paper type: Theoretical Research