How can you manage risk without the right tools?
I’ve tried to run a risk management program using Excel; it was not a success. It just took too long to update the spreadsheets and I simply didn’t have the tools to keep up with the speed of change.
So I sought and obtained approval to acquire automated solutions.
KPMG recently conducted a poll of about 100 risk practitioners. 64% were entirely reliant on manual processes.
Deloitte’s recent survey found that fewer than 25% are continuously monitoring risk, even though a majority believe that risk volatility will increase in the next year (i.e., risks will change more frequently and by larger amounts).
With the accelerating pace of change, the increasing impact of small events on reputation risk, and the pressure from regulators and others to have effective risk management, how can a company continue to rely on manual processes?
I don’t understand. Do you?
I am pleased to see that my own company, SAP, is increasing its use of automation. They are not only using SAP’s own solutions for risk management and control assurance, but they are implementing some very cool mobile apps so that executive and line management will be able to monitor and address risks as part of their daily routines. Risk management is being embedded into normal business processes and decision-making.
How about you?