riskmanagementframework - Blog - Global Risk Community2024-03-29T07:35:10Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/riskmanagementframeworkCreating Dynamic Risk Frameworks for a Dynamic Worldhttps://globalriskcommunity.com/profiles/blogs/creating-dynamic-risk-frameworks-for-a-dynamic-world2021-09-17T09:20:00.000Z2021-09-17T09:20:00.000ZChristine Thomashttps://globalriskcommunity.com/members/ChristineThomas360factors<div><img src="https://storage.ning.com/topology/rest/1.0/file/get/9565851696?profile=RESIZE_400x&width=400"></div><div><p>Most businesses can thrive quite well as long as the economy and environment remain healthy. We only learn about corporations that use excessive leverage or take on excessive risks during a financial crisis. The 2008 financial crisis was one such incident; many enterprises that had taken on excessive risk when times were good ended up collapsing. The current pandemic is another example of a comparable crisis that has highlighted many companies' worst weaknesses. </p>
<p>Numerous firms recognized that their risk management frameworks fell short of industry standards. It's clear to see why the majority of static <a href="https://www.360factors.com/enterprise-risk-management-software/">risk management software</a> fell short of expectations in 2020. Generally, the risks that firms must control do not vary very frequently. While static risk management frameworks exhibit several limitations under normal circumstances, their performance is nonetheless considered adequate by the majority of enterprises. The pandemic, on the other hand, demonstrated all the disadvantages of organizations relying on out-of-date technology to handle risks. </p>
<p><span style="font-size:12pt;">How the Pandemic Changed the Nature of the Game </span></p>
<p>One of the most critical concepts for any risk manager to grasp is that the pandemic is not a single risk that must be addressed. The pandemic is a significant worldwide occurrence that has introduced numerous new hazards and challenges that must be carefully addressed. This is also why static risk frameworks struggle to keep up with the new threats that develop and evolve as the pandemic progresses. </p>
<p>What makes managing the epidemic so tough for many organizations is the fact that it is always evolving and changing. These changes were triggered not only by the virus itself, but also by the local and federal government's response. Cities experienced varying degrees of infection and governments responded in markedly different ways. Some states implemented complete lockdowns, while others just requested residents to follow standard operating procedures but did not enforce them initially. As more data became available, many states altered their strategy and adopted new rules and policies requiring businesses to adhere to in order to continue functioning during the pandemic. </p>
<p>This required businesses to constantly monitor new rules and regulations, as well as new data regarding the epidemic, in order to ensure that their own response to the pandemic was appropriate. This meant that the risks that a business was attempting to mitigate or manage were constantly shifting, sometimes in a matter of weeks. Any organization that continued to use a static risk management system that took months to discover and assess developing risks found itself without the tools necessary to manage risks to their business efficiently. </p>
<p><span style="font-size:12pt;">The Benefits of a Framework for Digital Risk Management </span></p>
<p>Organizations that used agile risk management technology had a significantly different experience managing risks during the pandemic than businesses that continued to use a static risk management framework. Risk management technology-aided them in assessing risks instantaneously, forecasting developing threats based on data trends, and providing real-time risk measurements. This meant that rather than spending significant time just understanding the risks affecting the business, these organizations focused the majority of their time ensuring that all risks identified by their risk management framework were mitigated as fast and efficiently as possible. </p>
<p><span style="font-size:12pt;">Making the Transition from a Static to a Dynamic Framework </span></p>
<p>The good news for any firm is that if it is currently utilizing a static risk management system, migrating to a dynamic framework is considerably easier now. The advent of cloud solutions means that firms can swiftly install a cloud-based, out-of-the-box, purpose-built risk management solution rather than investing hundreds of thousands of dollars and 12 or more months. Cloud solutions do not require on-premises hardware or resources and instead function in the cloud. This considerably minimizes implementation and management expenses, as well as the time required to establish such a system. </p>
<p>Certain cloud solutions on the market might be delivered within a few days. This means that any firm now dealing with its risk mitigation framework can potentially convert the entire framework in weeks, rather than months or years, and rapidly begin receiving the risk intelligence and metrics they require. </p>
<p>Risk managers are able to generate a lot more value for organizations when they have powerful tools that can be used to monitor, manage, and mitigate risks. Risk technology helps businesses gain a deeper understanding of the risk exposure of the organization. It also helps them to deliver better services to customers and create better relationships with regulatory agencies through better reporting. </p></div>The Four Critical Components of a Sustainably Managed Risk Frameworkhttps://globalriskcommunity.com/profiles/blogs/the-four-critical-components-of-a-sustainably-managed-risk-framew2021-07-23T05:20:00.000Z2021-07-23T05:20:00.000ZChristine Thomashttps://globalriskcommunity.com/members/ChristineThomas360factors<div><img src="https://storage.ning.com/topology/rest/1.0/file/get/9271771090?profile=RESIZE_400x&width=400"></div><div><p><a href="https://www.360factors.com/blog/five-steps-of-risk-management-process/">Risk management</a> is not a one-time or limited-time activity — it is a continuous process that must constantly operate properly. This is also why achieving ongoing progress in risk management can be so difficult for organizations - it needs year-round monitoring and dedication. </p>
<p>The majority of organizations employ specialized <a href="https://www.360factors.com/blog/transforming-your-risk-management-framework-with-risk-libraries/">risk management framework</a> people, who serve as the business's sole line of defense against risks. This arrangement, we feel, is not sustainable. Any system that needs continual monitoring and is dependent on personnel is doomed to fail. Individuals are imperfect, and it is irrational to believe that they will make no errors or miss no indications over the course of a year. These errors might wind up costing firms a significant amount of money. </p>
<p>There are four critical components that a sustainable risk management program must include in order to produce consistent results: </p>
<ul>
<li>Adding value to employees through automation</li>
<li>Providing risk management tools</li>
<li>Risk prediction and proactive risk mitigation</li>
<li>Increasing the organization's size through improved risk management</li>
</ul>
<p><strong>Automating Employee Enhancement </strong></p>
<p>While automation is required for long-term success, we must also grasp the role of technology in producing consistent outcomes. Automation in risk management does not mean that workers are being replaced by computers or algorithms; rather, it means that their performance is being enhanced. The operative word here is "adjust." It implies "to supplement" or "to augment" anything, which is precisely what automation accomplishes for risk managers. </p>
<p>The prudent approach to risk management automation is to concentrate on the aspects of the work that humans struggle with. We do not need to replace these individuals; rather, we need to ensure that the performance gaps they have are addressed. There are several areas of compliance where humans outperform machines significantly. Our capacity to perceive the broad picture and give solutions is unmatched and will stay so until artificial intelligence is developed. Humans are capable of collaborating, investigating, auditing, and finally creating solutions that machines just lack the intellectual ability for. </p>
<p>However, when it comes to risk monitoring and alerting, computers outperform humans enormously. The software is inexhaustible - it can monitor every second of the day, 365 days a year, without fail. Additionally, software solutions are more adept at detecting and informing key stakeholders about changes. Individuals become aware of issues only after conducting an audit. Continuous monitoring of millions of data points and thousands of documents enables software solutions to detect changes instantly and wherever they occur. </p>
<p><strong>Providing Risk Management Tools </strong></p>
<p>Any firm seeking to maximize risk management productivity must strike the proper mix of technology and risk employees. The most efficient method is to allocate humans to tasks that they excel at and computers to tasks that they excel at. Simple and menial tasks must be totally automated so that employees may focus on the big picture and provide the outcomes required by the company. </p>
<p><a href="https://www.360factors.com/enterprise-risk-management-software/">Risk management technology</a> substantially alters the risk manager's job description. Although risk managers have years of education and expertise in risk management, they spend a significant amount of time in the office performing routine administrative work and risk monitoring. Risk management technology automates the routine tasks associated with risk management, allowing risk managers to maximize the value of their education and expertise. Rather than becoming bogged down in paperwork and other administrative chores, they now have the day free to assess the many dangers that the office faces and devise strategies to reduce them. </p>
<p> </p>
<p><strong>Risk Prediction and Proactive Risk Mitigation </strong></p>
<p>Risks must be handled proactively, and proactive risk management is only feasible with accurate risk forecasting. Businesses that use a reactive approach to risk management are susceptible - a risk can always materialize and produce a problem that cannot be resolved soon enough. Risk forecasting guarantees that regardless of the magnitude of the risk, the business will have time to minimize it. It enables organizations to prepare by thoroughly analyzing the risk, testing alternative solutions, and going through the specifics and plan with many specialists several times. </p>
<p>Artificial intelligence-based risk management solutions can assist organizations in properly forecasting risk. When it comes to risk management, there is a significant advantage to employing intelligent technology. These systems are capable of monitoring hazards 24 hours a day, 365 days a year, without missing any changes. They may ingest data from a number of sources and quickly make connections between risk variables and other business components. Additionally, these systems automatically alert designated stakeholders of any growing risk, allowing for quick remedial action to be performed before the risk becomes a reality for the organization. </p>
<p> </p>
<p><strong>Enhancing Organizational Growth Through Improved Risk Management </strong></p>
<p>Risk management is sometimes viewed as a necessary expenditure, but we can leverage it to our benefit. We need to shift our attention away from risk as a cost center and toward how we can leverage it to become the market leader. Every firm must negotiate the business environment, which is fraught with dangers. Firms that are aware of these dangers have a better chance of survival and growth, whereas businesses that are unaware of these risks are vulnerable. </p>
<p>Thus, the firm with the finest risk management system in the market will also be the one that can withstand the industry's most severe challenges. Numerous firms have surpassed the competition as a result of making the correct decisions at the appropriate moment. They were not clairvoyant – they just possessed the finest data on impending hazards and were aware of the appropriate course of action to follow in light of those risks. Automated risk management solutions significantly improve your organization's capacity to anticipate and prepare appropriately. </p></div>Benefits of Converting Manual Risk Management to Automatedhttps://globalriskcommunity.com/profiles/blogs/benefits-of-converting-manual-risk-management-to-automated2019-06-12T10:43:54.000Z2019-06-12T10:43:54.000ZChristine Thomashttps://globalriskcommunity.com/members/ChristineThomas360factors<div><p>Implementing a risk management process into an organization is important role for any organization. For having a successful <a href="https://www.360factors.com/blog/sustainable-risk-management-framework/">risk management framework</a>, you don’t need to be substantial to be effective, but it just needs to investment of time, money and energy. Good risk management doesn’t have to be effective resourceful, but it needs to have good synchronization and bonding with other departments, formalization and structured to be successful and rewarding risk management for an organization. The organization need to have a clear and strong communications across the departments. The risk management team is responsible to explain that why there’s a need for a change in their management model. Going automated from manual is a need of time. The effective model will help in adjusting better image in an organization itself and out of the organization as well.</p><p>A good risk management system should be used for managing risk instead of doing it manually. When you are supposed to assess risk to predict future you have make sure that the information that you are putting is authentic and worth it so that you can have clear idea what would are the possible risks and what would be possible solutions to it. By going automatic, company can also go on ease that all you need to do is to have one-time investment and then you and your company are good to go for risk management and then your company will be in safer hands as well.</p><p> </p><p><strong>Effective Enterprise Risk Management</strong></p><p>Risk assessment is a process which every business can do, and it is used for tracking the risks normally. Whereas, enterprise risk management is a process which every company ‘should do’ to evaluate the overall risk management and come out with concrete solution for it and it is mandatory for every business hat they must do it. Businesses succeed when management makes the right decision and management makes the right decision when the have right information, clear communication and right understand across the department and knowledge about upcoming and present risk as well. Management need to be very responsible while assessing risk and when company has implemented right risk model which is supported by latest technologies then there would be no second thought that management would lack in making the right decision.</p><p> </p><p><strong>Removal of Manual Tasks</strong></p><p>It is completely understood the every company is having a lot of information like employee record, employee information, financial records, bank details, company data etc. regardless of their sizes and nature and which they have to put into the system and manage it properly and for that, in modern days, if you’re not having an updated and fully automated version of risk model then there would not be just risk of losing the information or data but also the theft of it as any sort of information is very important for every business and they are answerable of it as well and if you’re having a good and secured system implement in your organization then it’s an assurance that your company is working in a safe environment. By going automated, the process of data entry and keeping the information is safe and less time consuming than manual and this practice is also very helpful for risk management as well for identifying and mitigating risk and to come to the conclusion and eventually making the right decision.</p><p> </p><p><strong>Risk Analysis and Reporting</strong></p><p>By having automated risk management system, risk managers get the most updated and highlighted information by which it gets easier for them to evaluate and mitigate the risk. Risk automation simplifies the risk analysis process as by this process all the information and data is being collected on continuous basis and is organized as well and risk managers have an across to most updated and accurate information which helps them in identifying the risk and coming to the best possible solution for it. This helps to enable them to report on the details that matters the most and actually represents the meaningful image and impact of the risk department and you also don’t need to collect the data and information from various sources, but it just become a click away.</p><p> </p><p><strong>Better Decision Making</strong></p><p>When all of the management and staff is having access to reports, company just not gains the trust and confidence of their employees that their management is having the right data and information, but it also helps in making the right and most effective decision for their company and employees. Decision making is always supported by data, information, insights and communication. It is less likely the decisions makers are not aware of all the contents mentioned earlier because by the help of automated risk management model, risk managers and decision makers always keep their selves up to date with all the information required for which they have automatic alerts, notification reminders and else.</p></div>