In 2019, organizational risks are turning into significant operational surprises, and the frequency will only increase as digital business requirements grow. There is no longer room for siloed risk management programs. Instead, security leaders must focus on building integrated risk management programs.
Risk management programs mitigate the impact of uncertainty on business performance
“Risk management programs mitigate the impact of uncertainty on business performance,” says John A. Wheeler, senior director analyst, Gartner. “By 2021, more than 50% of large enterprises will use an integrated risk management solution set to provide better decision-making capabilities, up from approximately 30% today.”
What is integrated risk management?
Many organizations are good at domain-specific risk management, but struggle to harmonize the three key pillars of a successful security and risk management program — a strong framework, a solid set of metrics and flexible, integrated systems. Integrated risk management can remedy this challenge. Integrated risk management improves decision making and performance through an integrated view of how well an organization manages its unique set of risks. It’s a set of practices and processes supported by a risk-aware culture and enabling technologies.
Integrated risk management uses a holistic analysis of internal and external risk factors. Successful organizations design a framework that seamlessly connects risks at the strategic, operational and IT levels. “To understand the full scope of risk, organizations require a comprehensive view across all business units and risk management functions, as well as key business partners, suppliers and outsourced entities,” says Wheeler.