Vigorous risk governance provides a clear insight into the existing risks and opportunities of an organization. Yet, many organizations lack a well-defined approach to risk governance execution.
In this article at The Wall Street Journal, Cynthia Vitters explains that many organizations take a siloed approach to a risk that focuses on selective individual and specific threats. These obsolete methods do not serve well to counter digital disruption.
Integrated Line of Risk Governance
Following the practical approach of the Risk Intelligent Enterprise, contemplate risk management as a value creator, not just a loss preventer. The way digital risks are constantly evolving, the risk management approach to tackle them should evolve too. The present digitally disrupted organizations need the right set of people, processes, and technologies to maintain the risk governance infrastructure.
Effective Risk Governance
The organizations need integrated views of formal risk governance policies, coordinated response to risk enduring events, and tools to enable risk management. C-Suite executives or management must foster the adoption of sound risk governance that stands apart and oversees risk management.
Without strong tone at the top, the organizations will continue failing to achieve their risk management goals. Rolling up all the risks enables management to understand the overall exposure of the organization, within and across multiple kinds of risks, in all businesses and functions.
The risk governance infrastructure encompasses policies, procedures, and practices of risk oversight along with the tools to operationalize the progress. This informative data must be shared with the right set of people at the right time and with the right approach to make risk-informed decisions.
Real risk governance transpires through the organization. The seniors need to be ascertained of managing critical risks and should be open to taking vital actions and decisions, cascading them into the lines of business. Click on the following link to read the original article: https://deloitte.wsj.com/riskandcompliance/2019/02/05/a-risk-intelligent-approach-to-risk-governance/