Five Signs 2019 will require maturing risk management

Five Signs 2019 will require maturing risk management
2019 is less than two weeks away, so thoughts turn to what your company should set its sights on for the New Year. Our advice is simple and direct—make maturing risk management a 2019 initiative.

Here are five signs that business in 2019 will be different, and why companies need to evolve in how they use risk management.

  1. Digital risks impact everyone
    The shift to digital business is well underway and will continue to make inroads in 2019. Ignoring risks associated with digital transformation can lead to incidents capable of producing breaches, as evident in this year’s major data breaches like Google, Facebook and Equifax. These digital risks impact everyone, from the receptionist to the chairman of the board. Integrating risk management processes can give you a wide-angle view to see what is affected by an adverse event caused by an unmanaged digital risk. You can even trace the problem to its source and work to address it.
  2. Third parties reshape organizations
    Companies continue to increase their investment in third parties, like vendors and suppliers, however, this growing reliance brings inherent risks and regulatory focus. When a third party fails to deliver, it impacts the entire organization. Maturing your risk program to include the full third-party lifecycle enables you to better assess and manage third parties and reduce the risk of doing business with them.
  3. Silos apply best to org charts
    Risk in 2019 will impact the entire enterprise, not just one department. Demonstrating compliance and managing risk involve multiple departments and areas of the extended organization. With IT and cyber risk being added to the boardroom agenda, 2019 will require departments to move away from the traditional siloed management structure and work together to minimize these risks.
  4. Risks to business are accelerating
    As business adopts digital processes, increases reliance on third parties, and embraces new and increasingly sophisticated risks, tools for managing risk must be agile enough to adapt to the rapid pace of change. Many companies still rely on spreadsheets for managing risk. That’s okay for simple tasks, but manual office tools won’t meet 2019 standards for managing risk. Point solutions designed to manage a specific task like policy management won’t cut it either. A GRC platform that supports integrated risk management can enable your business to keep up with the speed of business in 2019 and beyond.
  5. You can’t predict the unexpected, so plan for it
    It’s anybody’s guess what will happen in 2019. Will a low-risk vendor suddenly become a high-risk vendor? Will an extreme weather event impact your supply chain? Will prospects of a recession compel company leadership to seek efficiency gains from a technology investment? Your 2019 risk plan should be adaptable to whatever happens in the year ahead.

That’s five signs how business in 2019 will be different, and risk management needs to mature. Let the changes in business also change the way you manage risk in the New Year.

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