Risk leaders' agenda
Chief risk officers must act now turning risks into opportunities to reimagine and repurpose the organization for agility and long-term value.
Top issues facing risk leaders today
COVID-19, with all its indirect impacts, is the most immediate critical event organizations face today, but it is hardly the only one. Globalization (geopolitical power shifts and populism), environmental shifts (climate change and COVID-19), demographic shifts (the rise of Generation Z) and technological shifts (5G, quantum computing and precision sensors) are the primary forces creating new and constant waves of disruption — creating both opportunities and risks.
Going forward, enterprise resilience won’t be just a hygiene factor for organizations to survive in the foreseeable future. Trust will only be won by companies that have robust resilience built into their organization.
It’s not only about getting through crises. A truly resilient organization also needs the insights and mechanisms to react to and ideally prevent potential (unknown) risks, or at least reduce their impact, and a willingness to view problems as a strategic opportunity to grow.
While building resilience and getting strategic opportunities in sight, organizations will repurpose with a new vision and focus on long-term value. Given the strategic imperative, this will require fundamental transformations for most organizations. In order to realize significant and complex business transformation, organizations will require comprehensive program risk management to attain the underlying strategic values and achieve trusted transformation.
Trust is the foundation when working with your investors and shareholders, and also your business partners, customers and the authorities.
Monitoring and evaluating market trends, using external data along with the internal data you produce in your daily operations, allows you to make informed predictions about the future. This is an approach that can be facilitated through (advanced) data analytics technology.
These insights can help you prepare for any anticipated scenarios. They will enable you to address, at the right time, any potential risks that might arise. All of this means you will be able to keep true to your ”trust promise,” providing a strong degree of assurance.
At the same time, these insights will enable you to verify your business strategy, make adjustments as needed, and focus on long-term value. By doing all of this, you will give others the confidence to trust that your organization is set up for success and will effectively manage the next wave of change. Progressive internal audit will happen through a complex mix of progressive and agile internal audit, digitally-enabled financial crime processes, and automated compliance processes, etc.
How to develop trust throughout your organization
Our trust journeys help clients create confidence and transparency within all levels of their organizations. We examine our clients’ critical relationships and develop pathways to trust that drive ongoing strategic returns and protection of critical programs.
How can you use obstacles to drive productivity?
Every business must deal with a unique combination of regulations, standards and governing bodies based on industry, location and products. A trusted organization must understand the requirements and the most efficient way to help clients comply with those requirements.
Trust by Design helps you build automated, consistent trust around regulatory requirements from strategy to execution. That frees up resources, so you can focus on your business strengths and take the smart risks that keep your company ahead of your competition.
How do you build trust during a period of uncertainty?
Organizational trust is woven through every layer of your company. It spans the multiple disciplines in which your business operates. It’s simultaneously data-aware, people-focused and forward-looking.
It is the foundation for trusted interactions with regulators, third parties, investors and customers. But to achieve organizational trust, companies will need to seize two critical opportunities.
Trust by Design helps you reimagine the internal audit (IA) function and embrace the future of work.
How do you ensure third parties put you first?
Global trade has deepened and complicated the relationships between companies and third parties. Across the supply chain, firms might work in tandem with contractors, joint ventures, service providers, brokers, agents, consultants and others. But while organizations can farm out responsibilities for numerous functions, they cannot outsource the accountability.
Building new relationships is critical to combating disruption and enabling protection of critical markets. Trust by Design helps you build the two-way trust necessary in this interconnected era, and trust must be embedded throughout the third-party relationship.
If investor trust is a delicate balance, can your business still act boldly?
In this transformative age, organizations are faced with new risks and opportunities. The need for the right data at just the right time to make the best decisions can be a challenge. The next generation of leaders expect to be informed not only by internal data sets, but by external indicators. Enterprise Risk management must take into account upside, outside and downside risks in the marketplace. A cohesive trust management program can help allow leaders to make better decisions leveraging new intelligence capabilities.
Trust by Design helps organizations thrive in this challenging landscape and recognize trust barriers within an organization. Our clients understand disruption and we assist in prioritizing their response to changes in the market landscape.
Does trust require proof of trustworthiness?
Each year, the world grows more heavily digitized, and in a hyperconnected digital era, society will be critically dependent on technology to function. For companies to succeed in this world, security is clearly imperative — yet it’s only the foundation upon which trust, the ultimate enabler, is built. Stability, security, resiliency and reliability are the core qualities you need from your technology as it becomes more vital to how you compete in the market and deliver on your objectives.
Trust is fast emerging as the key competitive differentiator, a reality that is not lost on organizations around the world. Leading with a Trust by Design mindset means putting trust at the core of every aspect of your business.
Is customer trust the missing piece of the puzzle?
Customer needs and desires are constantly shifting. Digital technologies are obliterating industry barriers, intensifying competition and upending traditional business models.
Organizations must align their values and vision with putting the customer at the heart of their strategies in order to maintain a strong reputation and brand in the market. To build customer centricity that yields sustainable, profitable growth, companies will want to remember that implementation is not a marathon. It is a series of sprints, with people, processes and technology working hand in hand.
Minimizing risk throughout the business cycle is vital to creating more seamless experiences for the customer, with a brand they trust.
EY Digital Trust solutions, based on Microsoft technologies, help clients proactively respond to emerging threats, secure the fast-growing number of Internet of Things (IoT) and mobile endpoints.