The management of risk in your organisation should be of high priority. Risk management is concerned with identifying and controlling threats and vulnerabilities that could negatively impact the organisation. Knowing your risks, understanding your risks and enacting controls to manage those risks is critical in an ever-changing business environment.
One of the most significant risks of our time that is of concern to organisations of all sizes is cyber security. A cyber attack can impact the financial, operational and regulatory risk of a business in an instant. The first step in cyber risk assessment is to identify the critical IT systems and assets that are at risk. Having an incident response plan that is regularly updated and tested is also critical in being prepared for the worst.
It’s important to understand that cyber risk is not simply an “IT issue.” Cyber risk management is one element of the organisation’s risk management framework and is therefore considered as part of regular Board deliberations around operational, strategic and emerging risks. The Board needs to be confident that cyber risk can be managed like any other risk to the organisation.
Other risks your organisation may need to consider are supply chain, human resources, reputation, environmental and political.
Peter F Drucker once said you can’t manage what you don’t measure. This is very applicable to risk management. Identify your risks, manage your risks, and shore up your organisation for long term success and sustainability.
