Contributed article by Adam Sandman, Founder & CEO of Inflectra
As the world becomes increasingly digitized, companies must adapt their risk management practices to account for new risks associated with technology, security, and operations. Inflectra builds software solutions that support companies in managing risks efficiently and effectively. Why should the issue of risk management be a constant key concern?
Enterprise risk management is a multifaceted process aimed at maximizing value by minimizing the impact of risks to a company’s capital and earnings, reputation and equity, and operational infrastructure and processes. If there are issues within a company’s risk management framework, this will cause problems in their strategic, operational, compliance, and reporting needs
Three of the most significant issues facing companies in the area of risk management are:
– Remaining agile in the face of change – The biggest challenge in risk management today is keeping up with the pace of change. The landscape is changing so rapidly that it is hard to stay ahead of the curve. New technologies are being developed all the time, and with that comes new risks. To stay ahead of the curve, companies must invest in a robust yet efficient risk management process. Traditionally organizations have used a waterfall method to test risks. This approach locks the company into a rigid cycle, preventing them from being as adaptable as possible in the face of change. A more efficient method has integrated teams collaboratively defining the requirements, planning the releases and sprints, testing the product during development, and seamlessly deploying the latest update.
– Unpredictable ESG risks – Environmental, social, and governance-related (ESG) risks pose a sizeable, unknown threat to companies. Under this banner fall aspects such as employee safety and work conditions, security practices, workplace health and safety legislation, and management. Businesses can expect many disruptions over the coming years due to an unpredictable market and shifting geopolitical and socio-economic events. To help enterprises to protect against risks like these, companies will need to invest in integrative risk management software that will identify, analyze, evaluate, mitigate, treat, and monitor the risk within the company. One such tool is Inflectra’s SpiraPlan which includes an enterprise risk management system that is fully integrated with an easy-to-use web interface.
– Supply Chain Disruptions – Disruptions within a supply chain can cause losses both in time and money. One way to minimize disruptions in this area is to ensure that your internal team works together across all aspects of a project from start to finish. Such collaboration allows them to quickly adapt to issues within a supply chain and respond accordingly.
Utilizing technology such as SpiraTeam can help teams to stay connected and organized at all times. It’s important to remember that risk management is an ongoing process. It’s not something you can do once and then forget about it. You must constantly monitor your risks and update your processes as needed.
By following these tips, companies can protect themselves against the ever-changing risk management landscape.
