Scenario modeling everything from climate change and social unrest to cyber attacks and wars should be a key activity. Resilience war games can test and hone the organization’s response to these situations, just like a fire drill.
4. Look beyond boundaries to increase resiliency
Look beyond the organization’s boundaries at the risks both faced and presented by third parties, customers, alliance partners and suppliers. This includes assessing potential reputational and ecosystem risks by association with any of these stakeholders. Also keep an eye on megatrends, such as climate change, and their associated risks.
5. Use more data to inform risk intelligence
Building enterprise resilience means relying more on data-driven intelligence in risk management. And the wider the data sources, the more resilient the organization can become. For the time being, data will come from the same places as before, but CROs should seek out more of it, gather it in real-time, and process it to enable better analytics and AI. In the future, CROs will increasingly be seeking data from other companies in the same sector to analyze what is going on in their world.
6. Think longer-term
Those in risk functions were, for many years, treated just as compliance people. But now CROs are being challenged to break out and look at future trends to identify upside risks as well as outside risks in order to discover their long-term value perspectives. CROs must consider their organization’s meaning and purpose, and the value it brings to people and the planet as part of truly holistic and strategic risk and trust assessments.
In the coming months, all kinds of operations will be coming back online and businesses restarting as we emerge from lockdown. This is the critical moment when CROs should facilitate discussions with other leaders about the future of the business and operating model. The article suggests some recommended actions to help CROs.