Measuring the velocity of risk: Your risk recovery scorecard
(Sponsored article) Risk managers have been pressured since the start of 2020 to respond to the dual global threats of the COVID-19 pandemic and a changing economic landscape. What we’ve learned so far from our colleagues in the field is they are identifying layers of technology and initiatives at their companies that are no longer core or relevant. We’ve also had to learn how to prioritise new key issues around business continuity, supply chain risk, cybersecurity, compliance and the integrity of process and procedure.
SAI Global have released a new executive whitepaper ‘Measuring the Velocity of Risk’, which outlines a framework for adopting a broader perspective on risk management and business resilience. It serves as the foundation for management teams to forge a path forward in a dynamically changing business environment by identifying the perspectives necessary to implement changes that will ensure organisational resiliency. To survive this period of upheaval, leadership teams can benefit from outlining a Risk Arc that is customised to their organisation’s strengths and needs with distinct operational, technical and governance steps that are clearly and widely communicated throughout their organisation and customer base.
What we’ve seen so far in 2020’s business environment is that companies have had to swim against the current in two areas: keeping their employees safe amid a global health crisis, while managing costs and maintaining customer relationships in a way that ensures the business survives. It requires prioritising the best of our technologies and initiatives during a time when every issue seems urgent and important. Management teams should review this period to assess what have they’ve learned are their core business imperatives and to learn from the experience as a guide for what they would or should do differently when another crisis of this magnitude presents itself.
The true test of a business comes when it’s under duress. This is not about whether you’re an ethical business in the best of times – but whether you can continue to demonstrate those same best behaviours in the worst of times. The way companies treat their employees, customers, partners and other key stakeholders right now and the way they handle the business of doing business may echo for a generation. So how do you move forward?
A risk recovery scorecard can provide you with key data points to measure efficacy and focus along that pathway. By committing to an honest assessment methodology and creating a strategic risk-informed plan for moving forward, you will be better able to adapt in a rapidly changing environment and ultimately recalibrate and restart your growth engine. At some point in the future, the immediate disruptive impact of the coronavirus pandemic will recede as organisations react and adapt to new business and operational conditions. However, company leaders will have to prove to their most important stakeholders that they have been able to navigate through the business continuity and environmental, social and governance challenges surfaced by the crisis that posed significant financial risk to their organisations. They will also have to the reassure these same audiences that they can properly manage the next crisis, whatever the future holds.
About SAI Global
SAI Global helps risk and compliance professionals proactively manage risk to create trust and achieve business excellence, growth and sustainability for their organisations.
SAI Global has local offices in Sydney, Melbourne, Perth, Asia Pacific, Europe, the Middle East, Africa, and the Americas.