Supporting, managing and mitigating enterprise risk
Posted 18 May 16 by Sean Dillon
What constitutes enterprise risk will often depend on industry and environmental factors. The critical risks facing an organisation have changed over time and is largely driven by technological advances.
For example, in today's 'big data' environment enterprise risk is significantly influenced by the organisation's relationship with the consumer. Tribal culture has become an extremely powerful trend. Social media gives every customer an exponential voice. An organisation may be driven to have their brand 'go viral', however even an unintended slip can cause irreparable damage to a brand.
Identifying the risk is one thing, but how does an organisation support, manage and mitigate the risks?
Apart from providing adequate financial resourcing to these areas, installing an internal structure that has clear lines of responsibility, accountability and oversight will provide solutions that mitigate the risk. Segregating each of these roles is critical. Typically a committee is put in charge. Problem with most committees is they are structured to rarely achieve anything. Without clear lines of delineation it's just a forum for a group of people to have different views about something and decide nothing. This is dangerous for an organisation when this type of committee is in charge of an areas which have significant risk impact on the business.
Using a hierarchical system is one thing, having the right people in each role also requires well thought out process. Identifying the people within your organisation with the strengths and required skill set for each role is where to start.