Thinking Forward: Enterprise Risk Management for 2024 & Beyond
Last Updated: January 11, 2024
Going into 2024, practitioners and managers of Enterprise Risk Management programs are under more pressure than ever. As teams are asked to do more with less, the connectivity of your ERM program across the organization will prove to be a key driver of success. At the same time, the spotlight is on corporate governance, the set of principles guiding businesses in being accountable, transparent, fair, responsible, and risk-aware. ERM is an essential component of corporate governance and is crucial for navigating today’s dynamic risks and regulations.
For a long time, the approach to enterprise risk management has been driven by past indicators and performance. Organizations were only relying on what had previously happened to set themselves up for the future, without truly accounting for the ever-changing risk and regulatory landscapes. To effectively navigate the challenges of tomorrow, organizations need to embrace an integrated approach that removes friction and fragmentation across the entire enterprise while placing risk at the heart of all business decisions.
Successful Enterprise Risk Management Programs Focus On:
Planning For The Future
Successful organizations will not be caught up in planning based solely on what risk events have occurred in the past. They will have an understanding of past events but know that their success will be dedicated to planning for the future and anticipating the needs across departments. At LogicManager, we know that you cannot plan for the future without a true understanding of where you are today. The Risk Maturity Model will objectively assess the maturity of your program to better set you up for future success.
Taking a Holistic Perspective
Embracing a forward-thinking approach to ERM is all about bridging silos across organizations and building the connectivity of the program throughout the entire enterprise. This allows for cross-departmental sharing of controls, cost reductions by removing duplicative efforts, and leveraging the same risk criteria to create objectivity in assessments. By standardizing the approach and working from the same playbook, stakeholders from all departments will be speaking the same risk language.
Centralized Governance Activities
The outcome of cross-departmental collaboration is a centralized approach to governance, risk, and compliance management. Bringing your risk policies, data, and procedures into a centralized tool enables better buy-in from frontline workers. Also, this allows management and board members easier access to data for informed decision-making.
Efficiency & Innovation
Our enterprise risk management software is built to bridge silos across your organization. This means bringing together groups that previously operated by their own sets of standards. In doing so, organizations will clearly uncover duplicative work that can be eliminated and resources that can be shared to reduce spending. Adopting technology in this sense will also clear the runway for innovation in your risk department for areas like predictive analytics and risk planning – allowing you to stay ahead of emerging threats before they impact your operations.
Proactive Risk Management
Instead of just reacting to risk events, successful organizations will also be able to identify them early on and plan for risks ahead. By anticipating what is to come, organizations are better suited to apply resources ahead of time before their critical operations or infrastructure is impacted in a major way.
An Analytical Approach
Having easy access to risk data is no longer a ‘nice to have’. An organization has a responsibility to their stakeholders to have accurate data available in order to avoid fraud, waste, and negligence. Failure to do so will come with regulatory penalties as well as a reputational hit in the consumer’s mind with the See-Through-Economy.
Adopt a Forward-Thinking, Risk-Based Approach to Enterprise Risk Management in 2024
LogicManager’s Enterprise Risk Management solution will help your organization adopt a risk-based approach, empowering you to manage tomorrow’s surprises today. By bringing a proactive and forward-thinking approach to your governance, risk, and compliance activities, you can enable your team to make better decisions that are more in tune with strategic priorities. Speak with one of our risk experts to learn how LogicManager can improve your enterprise risk management program.