Page 7 - Risk Management Bulletin January-June 2023

RMAI BULLETIN JANUARY - JUNE 2023

matically be included to assess the risk and take ac- and instead making measurable progress. "Business
tion. leaders," Huntington said, "are realizing that ESG risk
is a business risk and are taking steps to mitigate it in
Risk assessment at the beginning of a new project is conjunction with their enterprise risk initiatives."
table stakes. Devising the best plan and finding a sys-
tem that supports a timely risk response yields the 8. CIOs broker C-level ERM buy-in
best results. "It is the maintenance of risk and the Enterprises are prioritizing resilience beyond just risk
timely response to risk throughout a project's lifespan management to handle the disruptions caused by the
that has the biggest impact on success," Matlock rea-
COVID-19 pandemic and economic uncertainty, said
soned.
Huntington. Companies with established ERM strate-
gies that tie in all departments can pivot quickly.
6. Risk mitigation and measurement
tools multiply To solidify risk and resilience plans within the enter-
prise, CIOs need to bridge the divide among their C-
Tools for actively measuring and mitigating risks are
getting better, said Keri Calagna, principal at multina- suite executives. "CIOs are the perfect broker to open
up these conversations," Huntington advised, "and
tional professional services network Deloitte. Among
help their peers solve this essential need since they are
the improvements are internal and external risk sens-
in charge of providing technology and services to many
ing tools that help generate the risk intelligence that
detects trending and emerging risks. of their peers.
In addition, Calagna reported that enterprises are turn- 9. Extreme weather risks grow in im-
ing to more integrated tools that do the following: portance
Y present a holistic view of risks across the organi- With crisis events like extreme weather growing in
zation;
impact and frequencies, CEOs and boards will be called
Y capture leading indicators to show how a risk is to implement risk management strategies to mitigate
trending; their impact on employees and assets. In 2021,

Y promote accountability for the actions taken to weather-related disasters caused an estimated $145
mitigate risk; and billion in damages, the latest figures available.
Y provide real-time risk reporting to aid in manage-
"With extreme weather now a norm, in 2023 CEOs will
ment decisions.
need to learn about risk mitigation to protect their
assets, employees and bottom line," said Mark
7. GRC meets ESG Herrington, CEO at OnSolve, an AI event management

Another enterprise risk management trend is connect- platform.
ing the dots between enterprise risk and environmen-
tal, social and governance (ESG) agendas. Expect a rise 10. Integrating risk management with
in scenario planning and assumption testing capabili-
ties, Calagna said. Companies are also using simula- digital transformation
tions, war games, tabletops and other interactive work- According to PwC's Digital Trust Insights 2022 survey,
shops to promote more cross-functional thinking about 75% of executives report too much complexity in their
risk to help assess the impact of different futures on organizations, particularly in their technology, data,
corporate business planning and strategies. and operating environments. The upshot is that enter-
prises are increasingly adopting an integrated gover-
"As companies begin their ESG risk planning, they nance, risk, and compliance (IGRC) program to simplify
should ensure that the actions they are taking are sig- their risk management activities, said Elizabeth
nificant and genuine," cautioned Clifford Huntington, McNichol, principal, cyber, risk and regulatory at PwC
general manager, GRC, at OneTrust, a provider of pri- U.S.
vacy management software platforms. Organizations
need to demonstrate that they're not greenwashing "Due to decentralized, overly complex systems, many

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