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Organizations should tailor their principle, methodology and approach to manage various business risks effectively, and keep the organization intact by ensuring sustainability.

Enterprises of the future are increasingly exhibiting the “VUCA” characteristics in various shades and intensity. Any company that fervently wants to be innovative must be willing to face risks and deal with risks effectively. Risk management is very useful for building a solid business reputation. It should be handled and prioritized in such a way that it’s inherent in the way that it doesn't negatively impact flexibility to produce premium solutions.

Risk management needs to lift up from risk control to risk intelligence: Change is the new normal, business transformation is the journey of continuous delivery and improvement. So risk management needs to be managed holistically, identifying the potential business growth opportunities timely. There should be a many-to-many relationship with the risks and the controls. One control will be linked to many risks. And one risk will be linked to many controls. Organizational leaders and professionals need to shift from “risk control” mindset to “risk intelligent” mind, spot risk management blind spots, and improve business risk intelligence.

It’s always important to apply critical thinking to identify potential risks; leverage system understanding to see the interdependence of business reality, capturing opportunities in risks and becoming risk-intelligence in the business dynamic effectively.

Risk management needs to enforce -risk model analysis- risk synthesis continuum: It’s critical to implement business initiatives steadily by optimizing the value of information while minimizing risks. Risk analysis is only part of the risk management problem-defining and solving scenario. Risk model synthesis focuses on answering the “why” and “what for” questions of risk management, to figure out the relevance of the past and present for the future desired transformation or outcome.

Every synthesis is built upon the results of a preceding analysis, and every analysis requires a subsequent synthesis in order to verify and correct its results. Risk management capability model synthesis is the right combination of capability integration and innovation. It’s difficult to duplicate, as there are organizational learning and cultural ingredients in it.

The efforts on managing risk holistically or in a more integrated fashion are critical for the long run: Integration is the cure to silos. It’s important to develop an effective risk management model for integrating all crucial elements such as processes, technologies, tools, talent, communication, culture, etc. It’s always important to collect information and feedback, to model, manage, measure risks, and manage opportunities systematically. Integration of corporate risk management into organizational culture is a crucial aspect of running a risk intelligence organization.

As long as risks have been identified and agreed with stakeholders as per business needs, then you can take place risk models which effectively predict, optimize, a continual and sustainable approach and specific threshold for justifying opportunities and business outcome. For leading organizations, enterprise risk management is already an integral compe­tency, providing the company a holistic process for connecting the right dots on risk management across the orga­nizations, put them in the right place, glue or lubricate them to ensure that they become a holistic entity rather than a sum of parts.

Uncertainty and ambiguity are the key challenges for business management today. Organizational risks directly impact business reliability on a daily basis, etc. Organizations should tailor their principle, methodology and approach to manage various business risks effectively, and keep the organization intact by ensuring sustainability. 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, you are able to manage uncertainty and improve risk intelligence effectively.

Posted in: Business Intelligence,GRC