How technology is rewriting the risk management landscape

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  • Disruption is the norm in the world of business.
  • Companies need to embrace new technologies and new ways of working.
  • LexisNexis and Governance Institute hosted a roundtable with industry experts to discuss the continuously evolving and challenging enterprise risk management.

Disruption is the norm in the world of business. The COVID-19 pandemic has thrown significant obstacles in the face of Australian organisations in recent years, but this is just one of many challenges leaders face. The ever-changing landscape we live in means businesses are constantly looking for innovative ways of working, tackling new issues, and looking to safeguard their operation.

With this ongoing evolution has come increased recognition of risk management in recent years. The more defined terminology and processes accepted throughout every industry have created a growing acceptance of professionals in this space. However, the continually evolving business world has brought increasing complexity for risk management teams too.

One of the biggest changes has come from the rise of technology, with new innovations continually expanding the range of potential risks to consider. As the number of possible entry points for attackers increases, so too does the availability of confidential information and opportunities to cause damage. From cyber security to business continuity and information security, every organisation is expected to stay agile and dynamic to keep up with these digital threats. 

But the risks presented by technology are a double-edged sword. In fact, the only way to effectively manage the rapidly changing and very detailed regulatory environment is to implement the technology and tools that directly respond to these concerns. These are solutions that offer in-depth insights, enhanced capabilities and rapid processing speeds to plan for disruption — and stay one step ahead of any threats.

The rise of behavioural-based solutions rather than rule-based solutions in the last five to ten years means strategic decision-making and operational control now rely on in-depth insights into a business, industry or workforce.

Such innovative technologies allow risk management teams to pinpoint and respond to concerns in real-time. For example, the ability to identify an impending denial of service attack allows an IT team to introduce preventive measures that disarm or prevent the attack before any major damage has occurred. This proactive approach eliminates or reduces any financial and operational setbacks, fostering business continuity across every level of the organisation.

Technology is also streamlining the daily practices of risk management professionals. The rise of behavioural-based solutions rather than rule-based solutions in the last five to ten years means strategic decision-making and operational control now rely on in-depth insights into a business, industry or workforce.

By turning to big data, organisations can uncover patterns, trends and associations between different threats. This computational feedback can help find otherwise unnoticed links or incorporate the learnings of other businesses in the industry into policy creation, leading to the development of more comprehensive risk management strategies and processes.

The challenge for risk management professionals is now to overcome any disconnect between their role and the available technology. Through discussions with those practising in the industry across various sectors, the overarching sentiment is to thoroughly consider the value of any tools before implementation. Considering the specific goal and any relevant context allows for a more comprehensive policy development process and enriched integration strategy. With this framework, risk management professionals are better equipped to tackle the dynamic influence of technology on their daily practice.

 

 

 

About LexisNexis
LexisNexis is part of RELX Group, a world-leading provider of information and analytics for professional and business customers across industries. LexisNexis helps customers to achieve their goals in more than 175 countries, across six continents, with over 10,000 employees.

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