2010 GRC Wish List: #6 Effective Technology
Patrick O'Brien 270004PR46 email@example.com | | 0 Comments | 256 Visits
“Better Collaboration with the Business” was in the #2 spot on our 2010 GRC Wish List and it talked about the need to embed risk management within the business by incorporating risk management practices into everyday business processes. Business line managers should be making risk-based decisions. But this requires them to be able to use internal sources of risk data from across the enterprise and, when available, external risk data.
Another major area of concern is how the constantly increasing and changing array of rules, regulations and industry standards is affecting existing processes and systems. In many cases, the technology solutions that support these processes are under extreme pressure and cannot adapt to satisfy the business needs. Meeting these regulations and standards requires gathering and storing risk data over a significant time frame. It also requires integrated risk reporting of the data for easy consumption by internal and external constituencies such as senior management and regulators.
Our #3 item, “Robust Organizational Risk Culture” talked about how technology can play a role in helping to create a robust risk culture. But it is clear that technology is an enabler and not a complete solution. Businesses must evolve their risk management methodologies to meet these changing requirements. The goal is to establish an effective enterprise-wide risk management program that is flexible to respond to change and it is tailored to an organization’s corporate strategies, business activities and external environment.
Many organizations that I work with are examining their risk management practices and are expecting to make significant changes in 2010. Investment in risk management systems, processes and technologies will be an essential step for many organizations. What is your organization doing to improve the effectiveness or its risk management processes and systems this coming year?