We reviewed the importance of Innovative Risk Management Strategies in the previous post. But there are more than one dimensions to Effective Risk Management. Risk Management is a rapidly developing discipline with varied views. Moreover, there is no “one-size-fits-all” approach for ERM. So, what is the other dimension we need to add to Effective Risk Management ? It’s Agility.
In a recent Poll conducted by Confident Governance at the Webinar “Innovative Risks and Digital Business Frameworks”, 57% Respondents admitted that their approach to Risk Management Implementation is not Agile. So, what has led to this complete disregard of the concept of Agility in ERM ? And how do we tackle this ? Let’s discuss
Why do we need Agility in ERM ?
Conventional Risk Management Strategies have only a holistic Operational picture which encompasses Strategies to Transfer, Alleviate, Avoid and Respond to Risk. But it has little or no scope for Company Executives to swiftly adapt to external Market fluctuations and simultaneously address internal Operating needs. For the modern dynamic Businesses , Agility has become a basis of Competition. Organizations can leverage Agility to expand Market share.
How do we implement Agility in Risk Management Strategies ?
As the first step towards achieving Agility in Risk Management, it is vital to conduct Risk Assessment at regular intervals to gain Operational and Organizational insights. It would be discerning to know about the Risk Assessment frequency in Organizations globally. In another question asked during the Webinar,we asked the Risk Managers about their Risk Assessment frequency.
From the Poll results we see that a considerable number of Organizations have never conducted a Risk Assessment or have conducted it 3 years/5 years ago. This approach towards Risk Assessment has to be changed first if Organizations want to achieve Agility. After we have conducted Risk Assessment, the next step is Decision Making. The Senior Management and the Board should be able to gage when to change a Business Plan and when to maintain a Business Plan. This insight can be obtained from Accurate and Real-time data obtained from an efficient GRC Tool.
Once the Board makes a decision, the immediate step is to Adapt and Implement. The team should have the ability to implement decisions swiftly. Agility enhances the cohesiveness of a Company’s entire value chain as an Integrated Process in addition to improving performance of Individual Processes.
Where do we need Agile Risk Management ?
Now since we know the “Why” and “How” of Agility, we need to know which are the Enterprises/Organizations that need to have an Agile Risk Management Implementation. The obvious answer is the Cloud Computing field, which is now gaining momentum globally as an Emerging Technology. Many Companies are moving their Processes/Data to Cloud. Cloud adoption requires Advanced, Vigorous, Scalable and Agile Risk Management practices to enable rapid Risk Assessment of Cloud Computing Risks.
To know more on how to leverage Risk Management best practices, join our Chairman and Co-Founder Bhavesh Bhagat, a Serial Entrepreneur and a GRC Expert, where he explains on how to elevate the “Human” side of Risk. Join him on May 26th at the ISACA NCAC 2015 Session ” Awakening the Risk Giant : Bigger, Better, Bolder – Re-thinking your Personal brand “.
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