Gone are the days of simplicity in business operations. The challenges that are thrown by ever-changing regulations, distributed operations, highly competitive business landscape, evolving technologies, and huge volumes of business data encumber organizations of all sizes. Risk management has become a challenge for CXOs, as well as managers throughout all levels of the organization.
The physicist Fritjof Capra said, “The more we study the major problems of our time, the more we come to realize that they cannot be understood in isolation. They are systemic problems, which means that they are interconnected and interdependent.” Capra was indicating that biological ecosystems are complex, interconnected and need a holistic, contextual awareness of the complexity in interconnectedness as an integrated whole – rather than a disconnected collection of systems and processes. Change in one area brings a cascading effect that impacts the entire business ecosystem. He might as well have been talking about risk management in the modern enterprise.
Three Prerequisites of Managing Enterprise Risk Effectively
Organizations must understand the impact of intricate risks on . . .
[THE REST OF THIS ARTICLE CAN BE FOUND ON THE KANINI BLOG WHERE GRC 20/20’S MICHAEL RASMUSSEN IS A GUEST AUTHOR]