This is part 4 of my initial 5-part series prepping the groundwork to support the IT community to thrive into the future of work.
Risk never sleeps for organizations! This is why risk has to proactively and intentionally managed.
The mission, values, strategy, and objectives are identified and communicated across the organization. All business is subject to risk. As such, risk management purpose is to minimize losses as the C-Suite executes on strategy and the organization conducts its day to day operations.
Risk management encompasses the identification, assessment, response, and ongoing monitoring of threats to the achievement of business objectives. Managing the loss exposure from a myriad of threat sources (such as financial, strategic, operational, cyber, etc.) is an enterprise wide effort. Risk management is integrated into the management of the entire organizations. There are various levels of maturity and efficacy of risk mitigation efforts to capture market opportunities while dealing with threats to the bottom line.
There are many levels of intentionality in risk management. They may not be obvious, but they are in effect at all organization. If organizations want to increase the odds of achieving their goals, they increase the intentionality of managing the downside of opportunities under uncertain market conditions.
Risk management is about helping the business achieve its goals. When done well, it is a business integrated function for managing risks across the entire organization. As volatility and uncertainty present challenges to all organizations, risk management allows bold action to enter the market, enabling decision makers to adjust and realize more successful business opportunities.
In the final initial posting, I will talk about a System of Controls, a conceptional application of people, process, and technology to cost-effectively manage a specific type of risk for all our organizations, cyber risk.
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