Here’s an interesting article from CFO.com about how risk is evolving from a tactical tool to a strategic business enabler. Authors Frank Friedman and Chuck Saia make several useful observations:
- Instead of asking “what technology do I need”, CFOs should ask “Is there an organization or group in place that is appropriately set up to make risk a strategy enabler and to identify the unknown?”
- They recommend creating two teams who handle risk oversight: one focused on day-to-day operating risks, and one focused on a strategic perspective to risk management.
- This second group focuses on “identifying trending risks or uncovering new and emerging risk”, and suggest that risk resorting should be aligned with the company’s strategic goals and objectives.
These ideas echo what we’ve been hearing from our customers as well: boards, executives and compliance regulators are demanding aggregated risk management: trusted, aggregated, transparent and timely, . And if you can build an effective risk intelligence program, you’ll help these audiences realize more confident, informed and effective business decisions.