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The risk function is evolving rapidly in a world of ever-increasing volatility and complexity. While the pandemic and related challenges remain a continual focus for virtually all organizations, there are many other emerging risks that warrant attention. These include geopolitical tensions, climate risk, cyber threats, increasing fraud attempts, and volatile global financial market conditions.
The role of risk management is to help companies deal with these and other emerging challenges. And this is best done so proactively, with an understanding of the potential for upside and downside risks based on the actions the organization takes as it maneuvers through uncertain times. As mentioned in prior blogs, the level of connectedness between risk and the organization needs to be higher and the cycles of decision-making and action need to be tighter. In any case, for risk to step up, the function needs to take advantage of new technologies and new data sources while building new skills to evolve.
There is no silver bullet nor easy fix. The reality is that risk and organizations have been continuously evolving and dealing with complexity…
