“In the rest of our lifetimes the pace of change will never again be as slow as it is today.” — Matthew Bishop
Within the last decade, there have been several extraordinary events. These have ranged from the global financial crisis to the pandemic. Although no organization or individual can reliably predict these risks but they can and should prepare for these uncertain times.
Recently, I read an article published by Forbes titled “Why Risk Management Is More Important Than Ever”. Having significant experience in risk mitigation and management, I found this article to be an interesting read. Since managing businesses have become a challenge in this volatile environment, the article mentioned some proactive and integrative solutions encompassing people, data, and infrastructure.
These solutions include the following -
- Connecting risk management more closely to business and front-office operations.
Risk management should be given priority. Rather than it being “sequestered in the back office”, it should be more connected to the front-office operations.
2. Getting better leverage from technology
Risk teams should take advantage of relevant and newer developing technologies. These technologies help the managers focus on the more serious threats, and reduce the levels of efforts in the low-risk areas.
“Emerging technologies such as machine learning and artificial intelligence show great promise in helping risk managers pinpoint specific risks and develop faster responses”
3.Aligning risk policies with business strategy.
“Risk should collaborate closely with business lines and the overall enterprise to reach consensus on how risk is defined, measured, controlled, and mitigated.”
4. Being active, not passive or reactive.
It is important for managers to be active and not passive. Simply identifying and mitigating the risk is not enough.
“New technologies can help turn this data into insights and unearth previously un-seen business threats or opportunities.”
“Organizations are still dealing with the effects of the pandemic, but most are beginning to plan for whatever “business as usual” will look like going forward. Better risk management may not spot the next big disruptive event, but it can accelerate and shape a more effective organizational response to whatever waits for us.”
Read the original article here.
About Lloyd: Lloyd Emerson Johnson is a results-oriented strategic advisor. With over 40 years of international, broad-based experience, Lloyd considers various disciplines in his approach to management and board governance. Through effectively evaluating all corners of a business, Lloyd Johnson has reinvented the roles of a strategic partner and stakeholder champion. He is a creative visionary who transforms businesses to be effective throughout all of their operations and finances. The pragmatic leader specializes in risk management and ensuring that businesses are prepared for uncertain circumstances.
Lloyd Emerson Johnson - Creative Visionary
Today's accomplishments were yesterday's impossibilities - Llyod Emerson Johnson - Creative Visionary