As technology continues to evolve, business leaders have a number of valid concerns related to enterprise risk and the competitive landscape. Challenges such as acquiring and retaining top talent, coupled with restrictions in growth opportunities and economic uncertainty are expected to continue to threaten businesses throughout the next decade.
Main Enterprise Risks in 2020
Although risk is a part of the business landscape, effectively managing risk by minimizing vulnerabilities and threats may prove to be even more challenging. In one particular survey, when business leaders were asked to identify the top risks for 2020 and beyond, 68% of them identified the following.
- Operational resilience, production, and delivery of products and services that are impacted by regulatory changes.
- Restriction in growth opportunities due to economic conditions.
- Difficulty in attracting and retaining top talent.
- Inability to compete with “born digital” players.
- Restrictions in organizational agility because of resistance to change.
- Insufficient preparedness for cyber threats.
- Challenges protecting the company’s security infrastructure.
- Existing company culture magnifying risk issues.
- Difficulty sustaining customer loyalty and retention.
- Workforce training challenges as a result of AI-enabled technologies.
Approaching Risk with Caution
We know that risk can be found in every industry. Learning how to effectively manage that risk is the first step in mitigation. That’s why the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) create and publish standards as a blueprint for organizational information security.
Having a well-defined process can help steer your organization in the right direction as it relates to risk assessment, management, and analysis. While the issues never stop, there is a way to be prepared without causing panic within the organization. Knowing the types of risk your organization may face is the first step to put together an effective risk management plan. Here are a few things to consider:
AI and Cognitive Technologies
We know that emerging technologies will continue to shift the enterprise landscape. The key is correctly analyzing the data gathered to provide insight into potential risks and threats. This is not easy, and will probably require the assistance of experienced internal auditors.
Expanding Realm of Devices to Manage
The Internet of Things (IoT) is only expected to expand beyond the year 2020. With the increasing use of connected and smart devices, it’s important to continually evaluate risk and implement protective measures. IoT devices must be ready to resist physical tampering, operate in a “hostile” network environment and recover from malicious attacks.
Increase of Risk Transfer
Impact risk events such as political unrest, climate change, terrorism, global financial crises and cyberattacks are expected to pose threats in the coming years. These real threats point to the need for effective risk transfer tools and third-party risk management solutions.
Companies must be very careful in avoiding risk that could escalate from social media and information exchange. By being proactive in addressing accelerated risk, they could potentially turn those risks into strengths for the organization. This is the power of successful reputation risk management.
Future Success Drivers
While embracing risk may be difficult, some organizations see this as a viable opportunity to raise the stakes. Many C-Suite team members are looking at success drivers with a positive perspective in 2020, considering risk as an effective way to positively drive value and performance.
Moving Confidently into the Future
Is your organization ready to move into the future? Do you have an effective strategy in place for risk analysis, assessment and management? It’s vital to have a team that understands how to carefully analyze every aspect of your organization’s infrastructure. Risk analysis and assessment work hand in hand to identify future risk and determine the company’s ability to successfully avert or tolerate those risks.
Financial markets are transitioning, there are mounting legal liabilities, credit risks, cyberattacks, and other events that could undermine the viability of your organization. So, not setting effective risk management protocols real leaves your organization more vulnerable than ever before. In order to avoid risk, you must know what effective risk management looks like.
Risk management is identifying, analyzing, evaluating, and prioritizing risks. It’s a plan to implement the right procedures, risk control, and financial resources for handling any crisis that occurs. The right risk management team has experience and training in helping alleviate risk within an organization at every level. Working with a technical partner to ensure it’s done right makes a difference.
Download our complimentary white paper: The Complete Guide to Enterprise Risk Management.
Will Your Organization Stand Up to the Biggest Concerns of 2020?
If you’re not confident that your organization can withstand multiple risk threats, it’s time to partner with a team that can help. I.S. Partners specializes in finding potential risks and helping to manage them while decreasing vulnerability. For more information, contact us or call 215-675-1400.