Effective Risk Management in Digital Transformation

As organizations progress along the path of digital transformation, proactive risk mitigation
becomes a higher priority. This implies that as business leaders manage the priorities
of security, agility and operational efficiency, they become better placed to embed risk
mitigation into the entire stack.

Organizations that have progressed their digital transformation plans are more inclined to work with third-party service providers than companies in the early stages of transformation. This suggests that with digital maturity, a greater appreciation exists for external expertise, especially when managing risk.

Notable differences exist in how business leaders perceive risk management priorities. Those working in government express concern about meeting regulatory obligations. In retail and financial services organizations, respondents prioritize ‘what if’ scenarios of reputational damage and corporate liability.

Compliance and security are not the same. Compliance corresponds to a set of needs that change slowly, not daily as seen in the security landscape. To protect sensitive data, an active, smart and thorough security plan coupled with a solid compliance plan is what organizations need.

Four approaches of digitally successful companies managing risk:

1. Overcome aversion to risk
2. Embrace risk
3. Strengthen understanding of risk
4. Monitor each individual risk
This article originally appeared in insightbrief.com.  To read the full article, click here.