3 Ways CEOs Can Close the Enterprise Risk Management Capability Gap

Despite the importance of risk containment, most C-suites are ill equipped to address it. Today’s risk management operations are not enabled to assist company leadership in making optimal decisions around the total cost of risk.

Frequently, data is the disconnect culprit: its timeliness, accuracy, and the way it’s presented and interpreted. Though companies are now more data driven, few can keep up with the demands of big data, due to ineffective data models and siloing.

“Though companies are now more data driven, few can keep up with the demands of big data, due to ineffective data models and siloing.”

Leveraging New Technologies
Now, we’re at a tipping point in enterprise risk management where converging technologies—such as cloud computing, the Internet of Things (IoT), and predictive analytics—are changing the way companies identify and manage risk.

Big Change #1: Cloud-based Enterprise Risk Management
The cloud helps companies overcome this data fragmentation by standardizing and centralizing information so it can be shared and reviewed anytime, from anywhere, by all stakeholders.

Cloud-based systems enable risk managers to elevate data to the C-suite quickly and succinctly for executive action. Cloud-based data warehouses make it possible to benchmark risk performance against peer groups adding context to information. The key is having high-quality, real-time aggregated data, facilitated by cloud-based platforms.

Paul Marushka :Paul Marushka is President of STARS, an enterprise risk management firm.