Holistic risk management has never been more crucial – 2020 and beyond
Today’s turbulent business landscape is leaving organisations to continuously evolve and relook strategies to respond to unforeseen events while ensuring continuity and competitiveness. With increasing risks and uncertainty, organisations are increasingly adopting a holistic and integrated approach to mitigate all potential risks.
In an increasingly uncertain financial, digital and geopolitical environment, corporate risk leaders are faced with an increasing pressure to improve their strategies to identify, assess and mitigate the most serious corporate risk threats.
As risk professionals, we can find ourselves preoccupied with a C-Suite reacting to a crisis and the ‘experienced experts’ facing a dogma in the solution space.
COVID-19 has proven the value of integrated risk management and an established risk and resilience model.
We will consider this alongside the shareholder value to a changing mindset.
Over the past two decades, the concept and practice of risk management has grown and matured significantly. However, it has done so in very inconsistent ways, with different organisations and industries creating their strategies and defining them differently with different responsibilities, authority, role, tolerance levels and interrelationships for internal controls, risk management, enterprise risk management and strategic risk management.
The COVID-19 was a fine reminder of the importance of ERM to organisations. Due to the evolving nature of risks and growing impact of incidents, the CRO in a boardroom is more influential and responsible than ever. Investing in risk management tools and strategies is no more to just identify and mitigate risks but also to create incremental value and business opportunities, from both a financial perspective but more from a reputational and culture perspective.
Moreover, there has been little discussion of how these considerations are to be related to the overall performance, objectives and resource allocations of organisations.
This panel will discuss how the sound ERM strategy can link all of these topics and related concepts into a management framework effectively while delivering maximum stakeholder value for enterprises.
With the increased number of cyber threats and the advances in cross-organisational tech adoption, IT and risk management are colliding more than ever. Organisations and risk professionals are under the pressure to ensure this collision is not destructive but instead it creates a constructive and synergetic relationship that can foster organisational growth.
Revisiting risk governance
Always mentioned as the most important aspect of ERM and often the toughest element of an ERM model, governance mechanisms and policies have to be continually relooked into to ethically manage risks. Today’s globalised world with increased interconnectedness, social networking and ever evolving technologies are much ahead of governance mechanisms, making risk professionals do what they can to revisit and benchmark their mechanisms with that of the world.
In the GCC, family businesses possess great power and market share across several industries, hence being influential to the happenings of the market. Family businesses in the region have to remain cautious to avoid reputational losses. Ensuring the right risk governance programme is in place is crucial for family businesses to thrive and grow in markets with global competition
With increasing uncertainties comes increasing pressure on risk, audit, compliance and strategy leaders within organisations to ensure preparedness for all opportunities and risks towards them. Risk governance has evolved with the ever-evolving nature of risks with more focus on culture, internal audit and mitigation techniques.
The cyber world is perhaps the most evolving, risky, and unpredictable area for risk professionals today. For ransom, reputational damage, infrastructure damage or any other reasoning, organisations face cyber threats more than any other risks. Ensuring a resilient, robust and agile cyber landscape and governance system is in place is no more a luxury but a necessity.
With ERM comes in a lot more importance to the IT infrastructure in an organisation. ERM frameworks and models require robust and efficient technologies in place to get the most out of them.
As organisations go on a race to be the most digitally advanced, customer friendly and innovative, risk professionals are tasked to cover and assess all potential risks while onboarding new technologies.