Align Your Risk Approach to Your Unique Business Realities
LockPath’s Colby Smith discusses the reasons an integrated approach to risk management is an imperative – chief among them digital processes, global business and a reliance on third parties.
Digital transformation, globalization and outsourcing have given rise to unprecedented productivity, innovation, efficiency, collaboration and knowledge. However, with these business improvements come new risks.
Modern business risks are multifaceted: they impact operations and compliance simultaneously, morph from cyber to supply chain risk or any number of combinations. The interdependencies created by digital systems, third parties and automation can lead to a cascade of negative incidents if the interplay of risk factors is not carefully considered and managed. Enterprises can no longer afford to silo risk management efforts. Too many blind spots and hazards lie in the space between departmentalized programs.
Integrated risk management (IRM) practices and technology solutions are designed to address an enterprise’s particular ecosystem of risks. Gartner defines integrated risk management (IRM) as “a set of practices and processes supported by a risk-aware culture and enabling technologies that improve decision-making and performance…