The big “R” in the avant garde Business community is the word “Risk”. But how many of us actually invest our Efforts/Resources for Effective Risk Management ? In a recent Webinar presented by our Chairman Bhavesh Bhagat, we conducted a Poll, whose results are Revealing (again the big “R”) and Intriguing. Before we discuss more into this, I would like to give some information on the Webinar. The Webinar, titled “Innovative Risks and Digital Business Frameworks” witnessed over 1700 attendees worldwide, comprising of Risk Managers, Financial Auditors, IT Auditors, etc…
The huge number of attendees signifies the interest of Risk Managers in implementing Innovative Strategies for Risk Management. We asked the Risk Managers a very simple question and we have the astounding Poll results here.
Looking at the Poll Results, we infer that only 21% Risk Managers feel that other Departments really understand the role of ERM in achieving Business Goals.
The 59% Risk Managers who feel that there are a few Departments who realize ERM significance, can be said to be in a positive zone, wherein they can fill the gap by regularly conducting awareness Sessions/Conferences internally.
But what about the red zone of the doughnut ? The 20% Risk Managers who feel completely stranded ? This is what we are going to discuss today.
To get a more clear picture , we asked another question to the attendees
We see a whole 53% respondents who are not backed fully with the Senior Leadership support. Now, it’s high time Companies need to resolve this. Risk Management is a Pro-active process and it delivers Optimum Results when it is used Strategically for achieving Company’s Goals and Objectives.
Effective Risk Management strategies enable you to identify your Business’s Strengths, Weaknesses, Opportunities and Threats. Being prepared for unanticipated events avoids acute “Business calamities”.
Consider for instance a recent case of a renowned Automobile company, who suffered acute loss as well as a penalty due to the sale of defective vehicles. All this because of a Risk which the ERM team perceived as a seemingly “low probability” event. In situations like this, it is best to reach out to the fundamentals and a detailed analysis of Corporate Strategies. Risk Management has to become a Core activity for Companies rather than just being a “Check-the-box” kind of activity.
Companies face various types of Risks, Internal and External, and they can definitely deal with the Risks which fall under their “Circle of Influence” in a Strategic and Innovative way. Incompetent Risk Management Strategies can result in loss of Shareholders’ wealth as well as other undesirable consequences.
So, what are these Innovative Risk Management Strategies and how are they executed ? Confident Governance helps Companies achieve and maintain highest Ethical Governance and Risk Management standards across all spectrums of Operations.We will continue this ConfidentNow Innovative Risk Management Series in our next post and discuss Innovative Risk Mangement.
Also, join us at the ISACA NCAC Summit 2015 at Washington DC where our Chairman Bhavesh Bhagat directs how to “Awaken” the hidden Risk giant within you, through the Session “Bigger,Better,Bolder – Re-thinking your Personal Brand”.
Visit our appexchange listing for more details.