Friday, August 12, 2022

Initiateriskunderstanding

10:31 PM Pearl Zhu No comments

Risk management has strategic dots that need to be connected.

Due to the “VUCA” characteristics -Complexity, Uncertainty, Ambiguity, and Velocity of the Digital Era, the directorship in any organization must have the agility to adapt to changes and build abilities to advise, inspire and motivate a group of people toward accomplishing shared visions and goals.

The important characteristics of digitalization are over-complexity, uncertainty, and ambiguity. Hence, GRC (governance, risk management, and compliance) becomes more critical than ever. Here's the context; how should GRC programs be approached? Should technology be a driver? Can you achieve any level of GRC without automation? Can you achieve any level of GRC without people? What is the real driver of GRC? Modern corporate boards play significant roles in guiding businesses in the right direction and achieve expected business results. Here are the multiple perspectives of shaping a strategic boardroom with digital acumen.

Risk Understanding

Initiateriskintelligence With “VUCA'' digital new normal, risk management should be a crucial component of the digital transformation approach. Do things better, faster and smarter. Risk management is like the brake pad, not for stopping the vehicle, but for making the vehicle running faster with safety control.

Innateriskcultureissues The ubiquity of information has provided both growth opportunities and increasing risks to organizations across industries. However, many companies are immature in the way they do their Strategic Risk assessment and management, enterprise risk management is blamed as a time wasting and unproductive exercise.

Critical Thinking & Risk Management Digitization brings unprecedented opportunities and risks to today’s organizations. You should apply multidimensional intelligence to make clear discernment, and apply critical thinking skills to solve thorny problems effectively. In fact, companies that get stuck with their old ways run the risk of being rapidly disrupted and gradually become irrelevant. Risk management needs to lift up from risk control to risk intelligence which can identify the potential business growth opportunities, prevent or manage risks effectively, and drive transformative change smoothly.

Risk Appetite to Risk Attitudef risk appetite implies some ability to actually measure risk level, then risk attitude is to determine the company’s attitude and strength to deal with risks appear.

Increasingriskintelligence In business, every day is a risk, generic risk management includes how organizations manage economic, legal, political, social and human risks, and how to build up business resilience.