Saturday, February 4, 2023

Understandingrisks

9:41 AM Pearl Zhu No comments

The flavor of GRC practices depends on the nature of the business and the level of the organizational maturity.

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.

Understanding of Risks

Initiateriskanalysis Nowadays, opportunities and risks co-exist, risk management is the discipline of managing risks and opportunities; risk intelligent organizations allocate sufficient time to identify opportunities whilst they are managing their risks. Strategic risk management actually creates value by identifying opportunities to capitalize on uncertainty and volatility to maximize gains and improve competitive positioning.

Initiateriskassessment In business, every day is a risk, when a company embarks on a growth strategy, the risk curve will always be greater than a business as usual approaches. The business management needs to ponder: Is your market sector volatile or relatively stable? What are the biggest risks in risk management? How to manage risk holistically? What are crucial components of holistic enterprise risk management solutions? Etc.

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. Enterprise wide risk management intends to manage enterprise risk systematically and effectively; risk management permeates across organizations and should not be a separate function at all, but rather taken as guidelines of business best-practices executed in this larger portfolio management to improve organizational effectiveness and maturity.

Initiativesofriskimprovement In running a business, everyday is a risk, what are the risk management blind spots? Is it because the management is too preoccupied with those nitty-gritty risks whilst losing sight on the big picture risk. Is it because the risk management program is immature and shortsighted?

UncoverrisklogicThe “VUCA” reality brings both an abundance of business opportunities and numerous potential risks. Any business can be at risk for survival at any minute due to continuous fast-paced changes and continuous digital disruptions. In business, every day is a risk, companies that are stuck with their old ways are exposed to the risk of being rapidly disrupted.