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 challenges facing risk leaders today
Globalization (geopolitical power shifts and populism), environmental shifts (climate change and COVID-19 pandemic), 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.