Successful organisations design a framework that connects risks at the strategic, operational and IT levels.
In 2019, organisational risks are turning into significant operational surprises, and the frequency will only increase as digital business requirements grow. There is no longer room for siloed risk management programmes. Instead, security leaders must focus on building integrated risk management programs.
Risk management programmes mitigate the impact of uncertainty on business performance. By 2021, more than 50% of large enterprises will use an integrated risk management solution set to provide better decision-making capabilities, up from approximately 30% today.
Many organisations are good at domain-specific risk management but struggle to harmonise the three key pillars of a successful security and risk management programme — a strong framework, a solid set of metrics and flexible, integrated systems. Integrated risk management can remedy this challenge. It helps improve decision-making and performance through an integrated view of how well an organisation manages its unique set of risks. It is a set of practices and processes supported by a risk-aware culture and enabling technologies.
Successful organisations design a framework that connects risks at the strategic, operational and IT levels. To understand the full scope of risk, organisations require a comprehensive view across all business units and risk management functions, key business partners, suppliers and outsourced entities.
The integrated risk management solutions market (including consulting services and implementation) will grow to $8 billion by 2021. Digital organisations are prioritising the need for risk management programmes. Security and risk management leaders need to evolve their risk thinking to a global context. Implementing an integrated risk management solution to meet the demands of digital transformation will move their organisation forward in a safe, profitable way.
Integrated risk management can be compared to a road trip: Your GPS maps the route and shows progress, while the vehicle enables you to reach your destination. Similarly, an integrated risk management framework maps an organisation’s risk, metrics measure progress and systems drive an organisation to meet their goals. Security and risk management leaders can take these four steps to develop an integrated risk management program to bridge the gap between enterprise risk, IT/cybersecurity risk and digital risk for a more overall view of operational risk:
* Develop an effective framework that is unique to the organisation’s risk profile.
* Employ metrics to identify how risk influences the behaviour and ability of individuals to achieve organisation’s goals.
* Use a pace-layering methodology to design, implement and integrate risk management systems.
* Grow the maturity of an organisation’s risk management disciplines to mitigate future digital business risks.
The writer is senior director analyst, Gartner