The ubiquity of information has provided both growth opportunities and increasing risks to organizations across industries.
Organizations have to look into an unknown future, envision unseen, and attempt to define the landscape with its risks and opportunities, to improve business agility and resilience.
Integrating risk management into the everyday business operation helps to move the organization forward in business excellence: The more diverse, regulated, and geographically dispersed an organization is, the more important an integrated or federated risk management approach becomes .Instead of risk management being viewed as the role of a few people in risk management, it needs to be viewed as the responsibility of every person in the organization, to assess their risk appetite, increase risk awareness, cultivate a good attitude to enhance risk management discipline.
An organization sooner or later will hit some crisis points in which a disruptive and unexpected event threatens to harm the organization. Strong risk management needs to be integrated into organizational culture-collective mindset and behavior to run a risk intelligent organization. All people must support it if the management wants to improve risk management effectively in organizations. It's important to increase corporate reputation capital, embed risk control mechanisms into key business processes, measure, manage, or model risk, not just control risks, but improve risk management methodology, technology, and overall risk intelligence.
Using information based analytics or feedback-feedforward cycle to optimize decision-making and improve risk management: With frequent disruptions and exponential growth of information, high velocity and uncertainty, risk analytics tools help the management identify potential pitfalls, the root causes of business problems, to improve organizational risk assurance system robustness. People are still the weakest link in Risk Management, they usually are the greatest source of risk -both classical downside risk and upside risk. The enterprise risk management would be making continuous improvement based on the feedback management.
To develop a people-centric risk management practice, businesses weigh risk and reward, take prudent risks and find ways to mitigate risk rather than eliminate it, and drive change large or small proactively. The value of analytics driven risk management could be in decision effectiveness, operation excellence, strategic resilience, improved reputation, increased confidence in management, etc. To embed risk awareness into corporate culture, do not ignore the relevant information and invaluable feedback because it informs you with greater clarity, and helps you overcome high risk, and improve problem-solving effectiveness.
Improving risk management maturity from value protection to value creation: Every risk has opportunities in it. Every risk has opportunities in it. More often, business is still fundamentally looking at risk in a negative context. Organizations that think of risks only when they talk of Risk Management are potentially missing the benefit of growing their business with the wisdom of their risk knowledge. For leading organizations, enterprise risk management is already an integral competency and top priority of business executives. They explore growth opportunities and create multifaceted value from it.
The companies with more mature risk management practices generate the highest growth in revenue by identifying the upside from a specific uncertainty one is threatened with, not just mitigating risks, but increasing risk intelligence for grasping value creation opportunities such as: accepting and owning the right risks to achieve competitive advantage; using risk management savings to fund strategic corporate initiatives; achieving high returns from risk investments.
Forward-looking organizations are on the journey for digital transformation. The ubiquity of information has provided both growth opportunities and increasing risks to organizations across industries. Strategy, people, processes, structures, etc, need to be glued up via the latest information technology into core competency, enabling companies to move up from risk mitigation to risk intelligence, for improving organizational agility and resilience.
An organization sooner or later will hit some crisis points in which a disruptive and unexpected event threatens to harm the organization. Strong risk management needs to be integrated into organizational culture-collective mindset and behavior to run a risk intelligent organization. All people must support it if the management wants to improve risk management effectively in organizations. It's important to increase corporate reputation capital, embed risk control mechanisms into key business processes, measure, manage, or model risk, not just control risks, but improve risk management methodology, technology, and overall risk intelligence.
Using information based analytics or feedback-feedforward cycle to optimize decision-making and improve risk management: With frequent disruptions and exponential growth of information, high velocity and uncertainty, risk analytics tools help the management identify potential pitfalls, the root causes of business problems, to improve organizational risk assurance system robustness. People are still the weakest link in Risk Management, they usually are the greatest source of risk -both classical downside risk and upside risk. The enterprise risk management would be making continuous improvement based on the feedback management.
To develop a people-centric risk management practice, businesses weigh risk and reward, take prudent risks and find ways to mitigate risk rather than eliminate it, and drive change large or small proactively. The value of analytics driven risk management could be in decision effectiveness, operation excellence, strategic resilience, improved reputation, increased confidence in management, etc. To embed risk awareness into corporate culture, do not ignore the relevant information and invaluable feedback because it informs you with greater clarity, and helps you overcome high risk, and improve problem-solving effectiveness.
The companies with more mature risk management practices generate the highest growth in revenue by identifying the upside from a specific uncertainty one is threatened with, not just mitigating risks, but increasing risk intelligence for grasping value creation opportunities such as: accepting and owning the right risks to achieve competitive advantage; using risk management savings to fund strategic corporate initiatives; achieving high returns from risk investments.
Forward-looking organizations are on the journey for digital transformation. The ubiquity of information has provided both growth opportunities and increasing risks to organizations across industries. Strategy, people, processes, structures, etc, need to be glued up via the latest information technology into core competency, enabling companies to move up from risk mitigation to risk intelligence, for improving organizational agility and resilience.
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