Uncoverrisks

 Organizations have to shift from risk-avoidance to risk management to risk intelligence.

Due to uncertainty and complexity of dynamic business ecosystem, risk management, or at a higher level, risk intelligence becomes a strategic imperative for business execution. The efforts on identifying, categorizing, integrating and managing risk are critical to build business advantage in the long run.

Strategic risks: The fresh approach to strategic risk management enhances the detection of future strategic risks and predictions of future performance. Business leaders today should contemplate: Is the 'strategic positioning' correct? Or is the company going in the right direction and does it have the right plan and right resources to get there? Many of the opportunities are in the blind spots. When you are not looking at your blind spots, someone comes in and disrupts you over time. So the point is: manage the risks, but identify some opportunities to grow as where. Risk management is less about control, more about increasing risk intelligence. It includes the system level concern of strategic agility and organizational resilience.

Information risk: As businesses move into the digital future, technology is the fastest growing arena, information is one of the critical assets of the business; knowledge is more intangible, complex and dynamic compared to the physical asset. Information compromise sometimes brings critical risk issues to the organization. Ineffective information management implies not understanding what raw data they have to play with; not understanding the importance of information/knowledge; not applying worthwhile evaluation to it to reveal the inherent value. It’s important to identify the purpose of the information and the stakeholders who will use it. Ask whether the quality of information can reveal anything meaningful for the identified purpose. Quality information management ensures the right people getting quality information to build a real-time information-savvy organization.

People risk: Business risks include talent related risks such as talent skill shortage, employee satisfaction, reputation, etc. They are frequently identified by organizations as some of the most critical issues they face. In a well established organization, human capability risk is associated with building the collective skills; a high performing organization needs to compete now and in the future; the breadth and depth of sets of skills and competitive capabilities present within a workforce. The human resource capacity risk is upon how an organization is able to create and maintain the size, scale and shape of the digital workforce needed to execute business strategy seamlessly. It is always important to monitor the talent pipeline and discover the alternative digital channels to recruit, and develop talent. What will it cost an organization to recruit and retain the talent it needs? Human cost risk is also critical for managing talent with effectiveness, efficiency, and flexibility.

Organizations have to shift from risk-avoidance to risk management to risk intelligence. Assuming that in any risk management program, all the known and potential risks would have been covered and managed, and over a period of time, the management needs to leverage advanced analytics tools to explore unknown, predict and prevent future risks. The purpose of assessing risk against consequence criteria is to determine what risk must be managed, who needs to be involved in that management and how to manage risk holistically to improve organizational effectiveness.

Posted in: GRC,Information/Data Management,Strategy,Talent Master