“The only constant is change” – But is it really? Think again!
Risk has steadily become part of the equation and mastering the art of risk management has become more important in every aspect, be it in business or in everyday life.
Beyond the obvious disruption brought about by the unprecedented pandemic, we will be highlighting the top risks likely to affect the business world. The number of risks goes far wider than the ones identified in this article. However, the intention is to highlight the salient ones which are proving to be considerably challenging for businesses to manage.
Cyber Security Risk
An increasing cause of disruption and consequently reputational harm are cyber-attacks. Considered as the modern robbery, businesses must be prepared to manage cyber attacks and threats that could impact the business financially, its operations and in worst cases, bring it to a halt.
How to mitigate – Invest in a strong IT function updated with the latest IT technologies.
Third Party Risk
Doing business with new alliances and other third-parties until recently may have been much simpler. Today, we are faced with a new reality. Background verifications on partners and other business relationships have become the norm. This has created some disruptions and added responsibilities and costs prior to onboarding new relationships be it clients, partners or any other business relationship. This is also set to grow further with the advent of ESG (Environmental Social Governance) regulations in the sense that any business with third parties will, in the near future, require the parties to be compliant to ESG regulations. The monitoring is ongoing and not just at on-boarding stage.
How to mitigate – The options are to either build a strong compliance unit. If this is not feasible, you can outsource this role to a professional.
Governance of the Organisation
Organisational governance is concerned with the rules, processes and procedures and the control environment in which the business operates. An examination of the business will help assess whether its present governance is in line with the expected rule book.
How to mitigate – A consultant can provide an outsider’s perspective, identifying gaps and propose means to address them.
Data Governance
Data – a very valuable asset of an organisation which must be protected. There is a risk attached to this data and the company must be aware of the way its data is being managed. This includes accessibility of the data, security, use and how it is being collected.
How to mitigate – Apply restrictions at every level. Not all employees need to have access to all data. In addition, a strong IT function and engaging a Data Protection Officer will add value to your business.
Business Continuity
Have you ever thought if one of the key roles in your businesses had to go missing? Would the business continue operating smoothly? Business continuity planning is key in ensuring that businesses do not risk serious disruptions. It assesses how prepared is the business in case such had to occur, how it reacts in crisis situations and its ability to respond to changes.
How to mitigate – Planning is often underestimated. However, planning should not stop at setting targets for the coming years only. It needs to encompass Business Continuity Planning.
Talent Risk
Also linked to the above, is the risk of loosing top talent. An era of digitalisation is redefining work. Other than employees moving to the highest bidder, investment in technology must be in place ensuring that the business is up to date with the latest trends and how the work gets done.
How to mitigate – Keep going and keep growing. You stand still and you fall behind. This ensures that top talent is continually challenged.
Our aim is to raise awareness and educate more businesses about dealing with management of risks and addressing short-comings. We are a phone call away. If you are interested in a free consultation feel free to drop us a line.
