Today’s businesses operate in dynamic, distributed, and disruptive environments where the only thing certain is change. To maintain the integrity of the organization, as well as to drive strategy and performance, professionals in risk management need to relook at their programs and determine if they are effectively designed to adapt to change and uncertainty to enable an organization to reliably achieve objectives in the midst of uncertainty. Today’s organization has to be able to see individual risk (the tree) as well as the interconnectedness of risk (the forest) as it relates to organizational objectives and performance. This is important because what seems like a small disruption or risk exposure may, in combination with other risks, have a massive impact on performance.
The physicist, Fritjof Capra, made an insightful observation on living organisms and ecosystems that rings true when applied to risk management: “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.” By that token, risk management has to be integrated and aligned with business objectives and performance management to truly add value.
A mature risk-management program does not operate in isolation from the business. A mature risk-management program is integrated with corporate performance, strategy, and objective management. This requires that the organization relate performance to risk, allows for multiple inputs impacting the risk environment from both internal and external contexts, and has a variety of ways to look at risk information to analyze, model, and relate risk back to performance and strategy.
This GRC Red Flag episode will look at how effective and mature risk management delivers:
Alignment of risk in the context of business strategy
Risk intelligent business decision-making
Risk-based business planning
Integration of risk and performance monitoring and metrics
Visibility of risk as it relates to performance and strategy across the business
Our host Michael Rasmussen
Michael Rasmussen is an internationally recognized pundit on governance, risk management, and compliance (GRC) – with specific expertise on the topics of GRC strategy, process, information, and technology architectures and solutions. With 28+ years of experience, Michael helps organizations improve GRC processes, design and implement GRC architectures, and select solutions that are effective, efficient, and agile. He is a sought-after keynote speaker, author, and advisor and is noted as the “Father of GRC” – being the first to define and model the GRC market in February 2002 while at Forrester Research, Inc.
Corporater is a leading software industry expert in GPRC (Governance, Performance, Risk, and Compliance), offering the unique capabilities required for enabling a sustainable, efficient, and effective GRC program aligned with strategy and performance, all within a single platform. Corporater provides the world’s leading Business Management Platform which offers ‘One View, One Platform’ for a holistic and complete overview of the business. We use our gains to make a social impact. With customers spread across 30 countries, ranging from SME’s to Fortune 500 companies and several governmental organizations, the user-base for Corporater has quickly grown into 100,000+.