As part of our series on Integrated, Digital Risk Modeling (IDRM) we now explore Holistic Risk Assessment.
If your company was a house, would you fix the leaking roof first or the crack in the foundation? What about the faulty wiring in the kitchen?
And what if you had to manage each of these threats in isolation, unable to compare the damage they could do?
In today’s corporate world, oftentimes executives have no choice but to manage multiple risks across the enterprise in this piecemeal manner. Each is monitored and managed with a siloed solution and process, so leaders never have a unified view of their entire risk landscape. They cannot weigh one threat against another or prioritize effectively. Decisions are made with blinders on. Given the rapidly changing risk environment, there’s risk in this risk management approach itself.
A new tech-enabled method called Integrated Digital Risk Modeling (IDRM) solves this problem. Its flexible architecture allows companies to measure, quantify, and report on all types of risk side-by-side — cybersecurity, data privacy, regulatory compliance, operational, supply chain, etc. With this intel, C-suite execs know which risks are the biggest threat to their strategic objectives. They can make informed decisions about where to allocate resources and pivot quickly when new risks emerge.
IDRM can be customized to address the threats that are most relevant to each organization and adjusted as circumstances and objectives change. It also can quantify the financial impact, remediation costs, and expected annual loss for risk factors across the enterprise — which enables apples-to-apples comparisons. Also, once a company aggregates and centralizes its risk data in a single tool, it can scale risk modeling and leverage the information in a variety of ways.
This is part of a series on the benefits of Integrated, Digital Risk Modeling. Previous installments include:
- Quantifying Risk is Mission-Critical But Most Companies Don’t Do It
- Integrated Digital Risk Modeling — The Powerful New Approach to Tackling Today’s Threats and Challenges.
- Making Industry Risk Benchmarks Meaningful and Actionable
- Emerging Technologies Continuously Screen for Heart Disease, Cancer and . . . Enterprise Risk