Risk is the root cause of uncertainty in a company. In a previous article, we studied the underlying concepts of risk management. One should focus always focus on identifying risks and mitigating them before create an unwanted impact on the business. Companies which can proactively manage such risks in advance can take relevant future business decisions. Yet, how soon should one update the risks? Every week, month or a year?
Very few companies allot a separate time slot to simply define the specific KPIs or KRIs to the employees. Without these parameters, it is difficult to set the right benchmarks or standards to effectively manage the resources available. Also, not many companies utilise relevant tools made available in the market to define and quantify these risk indicators. This is particularly surprising, when solutions such as VComply get rid of the redundant tasks and streamline the entire risk management process.
Very few companies have realised the importance of “Real time” risk management. Evaluating the risk on a yearly basis in today’s dynamic environment is life threatening to a business. A new risk can the next minute and thus, every company has to be on their toes to face it. Moreover, one does not realise the importance of dashboards and reports until an unwanted threat materialises causing the company a huge financial loss.
Regular analysis and adapting to risks is a habit which is required to stay competitive in a faced paced market.
Real time risk management has 3 components :
1. Instantaneous Knowledge
2. Comprehensive Visibility
3. Constant Assessment and Control
One should make use of technology to define, measure and monitor the risk. It can also be customized to accommodate new risks in the business. Companies usually consider adopting a new technology as a waste of time and finances. Moreover, a single integrated solution like VComply can accomplish their GRC goals with less time and hassle. It also meets the definitions of all the components mentioned above.
The auditors can participate and assess the GRC process in real time. If we look at the history of business, an entity who has not evolved with the technology had to remain behind the competition, eventually fading out of the market.
Companies should utilise the benefits of the tools which have real time risk management functionalities to keep up with business driven IT changes . Thus, it shall help them establish a culture of proactiveness and discipline using information technology to its full potential.Add to favorites