Corporate leaders and professionals should look at how the legal system in the world and society are developing, as well as the importance of industrial regulations, benchmarks.
It is important to establish an effective risk management, compliance and governance platform to identify vulnerability in the control via objective assessment and determine the potential range of consequences ($, business interruption, litigation, reputation, etc.). All of these are applicable to the entire organization for improving business effectiveness, agility and maturity.
Sound risk intelligence platform is part of eliminating risk and doing the right thing: There is a myriad of information, conflicting, disrupting; the management needs to ponder: Can you predict or manage risks, can you deal with uncertainty? Can you manage legal risks systematically? Lack of risk awareness creates more blind spots uncovered and gaps unfilled. Where there is a risk, you want to investigate this early and find out whether or not it can be addressed and manage it adequately, in order to turn around the situation and ultimately lead to success.
Sound governance is part of eliminating risk and doing the right thing. If your organizations are highly regulated, then your GRC would focus on compliance and audit foremost. If you are less regulated, you can use the GRC to facilitate discussion of common risks, legal issues, governance concerns across the enterprise and avoid duplicating efforts for risk remediation. A platform approach enables risk managers to understand the business value of risk management from a broader perspective and connect the relevant dots to manage risks and compliance in a structural way.
The risk manager should make an objective assessment of their risk management systems and tools, identifying risk management blind spots: There are internal and external risk, strategic risks, operational risks, legal risks, ecosystem related risks; there are risks we can control, and the ones we cannot. Strategic risk is knowingly assuming a risk that is worth the effort to predict, analyze, because it is believed that the potential reward outweighs the potential downside Systemic risks are risks external to the organization, such as political or geographical environment, industry, etc. Operational risks could be the risks that are related to daily business activities, etc. Defining risks this way enables corporate management to define what degree of consequence - assuming the risk is highly likely to occur, how to improve risk management process intelligence, tailor different solutions to manage diverse risks successfully.
A sound risk management platform enforces integration between the enterprise risk management process and the business planning processes; integrates risk management into the enterprise’s core decision-making processes, and integrates GRC practices to improve business responsiveness and adaptability. The platform approach to assess and manage risk is to look at the effectiveness of the risk management strategy, not just its financial value; manage risk and opportunities holistically.
Cultivate and enforce a risk intelligence culture: People are the center of risk management. There are "human factors" such as irrational, cognitive, or behavioral aspects in risk management. It’s important to cultivate a culture of risk intelligence. The management puts emphasis on risk management and control, raises employees' level of understanding of risk, ensures the employees' understanding of policies, laws, compliance regulations, educates them about working related laws and principles, collects more information on risk culture assessment; keep GRC consistent with direction from management.
Digital leaders and professionals are all facing pressure and risks to make decisions every day, be intelligent with humility, keep updated with knowledge about relevant industry, law & regulations; apply critical thinking as the mental process of actively and skillfully conceptualizing, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.
Sound risk intelligence platform is part of eliminating risk and doing the right thing: There is a myriad of information, conflicting, disrupting; the management needs to ponder: Can you predict or manage risks, can you deal with uncertainty? Can you manage legal risks systematically? Lack of risk awareness creates more blind spots uncovered and gaps unfilled. Where there is a risk, you want to investigate this early and find out whether or not it can be addressed and manage it adequately, in order to turn around the situation and ultimately lead to success.
Sound governance is part of eliminating risk and doing the right thing. If your organizations are highly regulated, then your GRC would focus on compliance and audit foremost. If you are less regulated, you can use the GRC to facilitate discussion of common risks, legal issues, governance concerns across the enterprise and avoid duplicating efforts for risk remediation. A platform approach enables risk managers to understand the business value of risk management from a broader perspective and connect the relevant dots to manage risks and compliance in a structural way.
The risk manager should make an objective assessment of their risk management systems and tools, identifying risk management blind spots: There are internal and external risk, strategic risks, operational risks, legal risks, ecosystem related risks; there are risks we can control, and the ones we cannot. Strategic risk is knowingly assuming a risk that is worth the effort to predict, analyze, because it is believed that the potential reward outweighs the potential downside Systemic risks are risks external to the organization, such as political or geographical environment, industry, etc. Operational risks could be the risks that are related to daily business activities, etc. Defining risks this way enables corporate management to define what degree of consequence - assuming the risk is highly likely to occur, how to improve risk management process intelligence, tailor different solutions to manage diverse risks successfully.
A sound risk management platform enforces integration between the enterprise risk management process and the business planning processes; integrates risk management into the enterprise’s core decision-making processes, and integrates GRC practices to improve business responsiveness and adaptability. The platform approach to assess and manage risk is to look at the effectiveness of the risk management strategy, not just its financial value; manage risk and opportunities holistically.
Digital leaders and professionals are all facing pressure and risks to make decisions every day, be intelligent with humility, keep updated with knowledge about relevant industry, law & regulations; apply critical thinking as the mental process of actively and skillfully conceptualizing, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.
The purpose of governance, risk and compliance management is not to stop the business vehicle, but to ensure it is driven smoothly with safety control. The platform approach is structural for improving GRC management effectiveness. Corporate leaders and professionals should look at how the legal system in the world and society are developing, as well as the importance of industrial regulations, benchmarks. Be compliant to the business rules & relevant laws. Metaphorically, if a modern organization is like a vehicle, then, governance is like a steering wheel; risk management is like a brake pad and compliance is like the set of traffic rules. All of which help fellow citizens to be safe, active, and run a more harmonized society.
1 comments:
Really an informative article.
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