Future Challenges in Enterprise Risk Management
New research from Infosecurity and ICASA explores the many challenges enterprises face in managing and optimising risk management processes. Here are some takeaways to note and act upon in the fast-changing risk environment of the future.
New identified risks
Risk management has increased in complexity with the adoption of technologies such as AI, machine learning and IoT-connected devices going mainstream. The implementation of new technologies contributes to the advancement and automation of business operations, but it also introduces new risks for the foreseeable future.
Companies are now concerned about the degree of risk complexity and tolerance, which requires continuous optimisation of ERM processes to allow for the newly identified risks, particularly cybersecurity and data privacy management in the digital enterprise.
Businesses must identify and prioritise the level of risk tolerance concerned and faster turnarounds for acting on these new risks, according to the ICASA research.
Risk tolerance levels
Risk management optimisation is impossible to execute without clearly defining the level of risk to which a company is regularly exposed and its risk tolerance. The research found that less than 40% of businesses surveyed consider their risk tolerance levels highly optimised to withstand increasingly intelligent threats.
In the future, companies will focus on continuous risk management improvements and not only establishing processes for better risk identification. It will require an advanced ERM platform with smart data analytics that aligns risk management to business objectives, analysing any vulnerabilities and automating responses to threats.
Enterprise Risk Management (ERM), part of the XGRC Software product range, enables the methods and processes to achieve your strategic objectives.
Security risks and response times
Cybersecurity is fast becoming a priority in risk management. The ability to respond as soon as possible to cyber threats and vulnerabilities arising from the implementation of new technologies is becoming more vital.
Research indicates that more companies are aware of their lack of fast responsiveness to new threats, but only 31% of respondents are prepared to mitigate a new danger in less than a month. Streamlining risk management processes helps increase the speed of execution and agility, allowing organisations to become better prepared for tomorrow’s digital risks.