Your organization’s single biggest risk is an ineffective risk management program. Organizations tend to focus on compliance objectives while inadvertently undervaluing or deprioritizing risks that could have significant impacts for many reasons. Compliance goals are prescriptive, with concrete actions to accomplish, making compliance a generally straightforward activity. Risk, on the other hand, is dynamic and complex.
During the early 2000s, some of the largest financial scandals (Enron, WorldCom, Tyco) rocked the business world to its core, unleashing a new regulatory wave of corporate governance and internal controls requirements. In its wake, the three lines of defense (3LOD) were born. And when the Institute of Internal Auditors picked it up 10 years later, the industry branded and prescribed 3LOD as the cure to poor risk management. Yet, like prescription drugs, regulatory support doesn’t guarantee effectiveness.
Enter a More Modern Risk Approach: Continuous Risk Management
Here’s where we need the right prescription for managing risk. Continuous risk management is a modern approach to ensure that organizations not only take on the right risks in support of…
