Increasingriskintelligence

Forward-looking, risk-intelligent organizations can leverage information for predicting risks, grasping opportunities, develop the best and next practices to improve business effectiveness and organizational maturity.

With the increasing pace of changes and the exponential growth of information, assessing and managing risk effectively is an important step in improving organizational maturity and achieving high-performance business results. In many organizations today, business planning and risk management are run as parallel exercises. Very few organizations can incorporate enterprise risk management into their business plans and standard operating procedures.

Forewarned is Forearmed: This idiom highlights the importance of gathering information and anticipating potential risks to be better prepared to face them. There are two aspects to managing risk, assessing it and then evaluating it against acceptable levels. Information-based prediction helps to prevent risks at either strategic or operational levels across ecosystems. To quantify risk is one of the most challenging aspects of risk management. Information management capability directly impacts the level of risk intelligence and, ultimately, the business effectiveness, performance, and maturity of the organization.

Keep Your Ear to the Ground: This idiom emphasizes staying informed and gathering intelligence about potential threats. It's crucial for effective risk management. Information brings both opportunities and risks in business management. The art and science of information management are about how to clarify information and deepen contextual understanding, as well as how to optimize information usage to improve risk management effectiveness.

The pervasive digitization means “reduced time to information and knowledge” by determining the strategic objective, identifying and assessing risk criticality, and adjusting the business speed. To respond to the emergent business properties and make information more “visible” for shareholders, link information management to the multiple business domains within the enterprise and their business partners for improving decision-making coherence, and enhancing risk intelligence

Look Before You Leap: This idiom emphasizes careful risk assessment before taking action. It's about understanding the potential consequences before diving headfirst into varying situations. All sorts of information captures reality, the reality that systems have what is known as "emergent properties," properties of the whole that are not properties of the parts. So it’s important to integrate risk into resource prioritization and planning processes.

Look underneath the surface, see around the corner to gain an in-depth understanding of complex issues, and increase risk management effectiveness. The risk management process helps organizational management prioritize the activities they are committed to resourcing in addition to serving as a cross-check for anything that they may have missed or are doubling up on. Ideally, 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 also able to better manage uncertainty and increase risk intelligence on the way. 

We all know the old saying: An Ounce of Prevention is Worth a Pound of Cure. This classic idiom emphasizes proactively identifying and mitigating risks before they cause significant problems. Forward-looking, risk-intelligent organizations can leverage information for predicting risks, grasping opportunities, develop the best and next practices to improve business effectiveness and organizational maturity.

Posted in: Business Intelligence,GRC