- “Financial institutions are increasing their exposure to risk.
- Managing complexity is becoming one of the biggest challenges for firms.
- The risk management function is finding it hard to increase its authority.
- There is plenty of room for improvement in the relationship between the risk function and other parts of the business.
- Progress on revamping and strengthening risk management has slowed.”
Risks are the part of any business enterprise. Hence, in today’s competitive business environment, enterprises cannot afford to be lax when it comes to ensuring business continuity. Today enterprises face risks due to uncertainties in the financial markets, legal liabilities, accidents, project failures, credit risks, natural disasters, deliberate attacks, and unpredictable events. Hence, they need to put in place effective information risk management solutions that blend people, processes and technology to minimize and mitigate risks and ensure business continuity and customer satisfaction.
Wikipedia defines risk management as “the identification, assessment, and prioritization of risk (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.” In short, risk management is the challenge of pursuing opportunities while minimizing or controlling the dangers associated with it.
For ensuring effective risk management, enterprises must collaborate with solution providers who can help in developing risk management frameworks that are standards based (COSO ERM, NIST 800.30, ISO27005) and simple enough to be accepted and used by the business. Here is a look at the services provided by a best of the breed solution provider.
· Strategy and Design
Based on the assessment of the client’s risk management strategy, policy, process, compliance requirements and analysis of the client’s risk identification, ranking, rating mechanisms and the operational processes, the solution provider develops a holistic risk management framework. The framework outlines how risk management will be carried out and includes education sessions for the ‘risk SPOC/champions’.
· Implementation and sustenance
The solution provider assists the client in deploying the risk management framework by training the risk SPOC or champions, designing the risk management templates, customizing the rating and ranking mechanism to address various types of assets. The solution provider provides project management and technical implementation (in case GRC tools are put in place) skills to effective implementation as per the design criteria and also assists with ongoing management of the framework by lending their skills to project manage the periodic assessments and make appropriate treatment decisions.
Collaboration with such a service provider helps enterprises in developing integrated frameworks that provide them the ability to make ‘risk intelligent’ control decisions. The result of which is the ability to provide assurance to the business on the choice or controls and control implementation.
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