Your cybersecurity research and solutions should enable your organization to apply cyber risk and resilience management models and methods to assess and improve its operational resilience, manage operational risks, define meaningful metrics, and ensure mission success. All organizations must manage risk for strategic value (enterprise risk management) and so that they can stay in business. Most organizations can stand to improve the oversight, control, and discipline of risk management as they, and the world, evolves.
To improve enterprise risk management maturity, you need to define your risk appetite, ensure the right people are taking responsibility, and measure your progress, taking care to identify the essential components in the process and the roles and activities of the principal parties. Your tools should support the processes, data elements, and analytics to deliver a well-managed, well-understood cybersecurity risk management program.
Aligning enterprise performance management with risk management is a key aspect of achieving your financial goals and objectives while maximizing performance, the primary focus for most organizations. Well-managed business units or risk management programs include robust plans, procedures, goals, objectives, performance reporting, and ongoing improvement efforts. Through developing a comprehensive understanding of the total cost of your risk, you are better able to commit to helping produce stronger returns on your risk and people investments.
By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall. General counsel, compliance officers, contract managers, and other legal professionals can implement legal risk management within their own domains.
When faced with increasing uncertainty, organizations must take a proactive stance to manage risk and realize opportunities that align with stakeholder needs. Key risk indicators (KRIs) are an important tool within risk management and are used to enhance the monitoring and mitigation of risks and facilitate risk reporting.
Adequate risk and compliance workflows enable stakeholder reporting and visibility and ensure best practices and standards for cloud compliance. Another critical management responsibility is to establish an effective reporting system to keep the board informed of how management is addressing critical risks. For the most part, the senior leadership team under the leadership of the chief executive officer is responsible for implementing the strategy, culture, people, and processes of your organization.
Managing opportunities and their associated risks can provide you with reasonable assurance that your decisions are sound. Because risk is inherent in everything we do, the types of roles undertaken by risk professionals are incredibly diverse. Risk management has become an essential part of corporate management, strategy, and leadership over the past few years, and risk executives are increasingly required to work across a broad range of issues.
Proper risk management implies control of possible future events and is proactive rather than reactive, incorporating better controlling of costs and use of resources. Strong risk management, including management of environmental and social risk, should be an important part of your values and operating principles and one of the cornerstones of your organizational code of conduct.
Want to check how your Enterprise Risk Management Program Processes are performing? You don’t know what you don’t know. Find out with our Enterprise Risk Management Program Self Assessment Toolkit: