Managing Enterprise Risk in a Connected World
In a connected world, disruptions can be devastating. A single organization in one small corner of the planet can be impacted by geopolitical events and weather disasters thousands of miles away, supply chain issues, vendor failures and more. As sharing information becomes more prevalent, important and complex, organizations must work even harder to prevent exposure and respond effectively to cyber risk. The benefits of protection, however, are well worth the commitment. Beyond keeping an organization safe, strong resilience delivers strategic advantages and greater confidence in the pursuit of new business opportunities.
Organizations now face a constantly growing range of enterprise risks and cyberthreats. While some attacks make headline news, others are subtle enough to go undetected for considerable periods of time. Many of these incidents do immediate and lasting damage to affected organizations and their reputations.
The unfortunate reality is that most organizations will be unable to block every enterprise risk and cyberattack. This new norm requires them instead to compromise, and focus their efforts on security, continuity and resilience.
To become resilient, both IT and business leaders must engage in an ongoing dialogue about the balance of risk versus opportunity. Incorporating discussion about cyber risk and other threats into the overall business strategy is much more effective than simply reacting to the latest “cyberscare.” In fact, it normalizes the topic of enterprise risk.
While it may be difficult at first for enterprises to gain a transparent view of threats, especially in organizations that have little to no experience in cybersecurity, it can be done, in part by adopting a structured approach and by getting all organizational leaders speaking the same risk language.
To start, leaders must identify their current position on the risk-versus-opportunity continuum – that is, where they want to be on the continuum now, given the current view of overall strategy and opportunities. They may also consider where they want to be in the future, as new opportunities emerge or fail to materialize. Will the organization be compelled to take on more risk? Will it be less willing to accept risk?
For instance, a move to the cloud might expose the organization to new cyber risks, but it can also deliver huge gains, such as increased capacity, greater flexibility and reduced capital expenses. To balance these risks and rewards, stakeholders will need to take into account the organization’s overall strategy, risk appetite, new business opportunities and current challenges.
Download the paper to learn:
- Best practices for addressing enterprise risk, including creating a board and having a good understanding of the resilience topic
- How to assess enterprise risk tolerance
- The importance of creating a risk framework and matrix that aligns risk appetite with actions for managing or mitigating risk
For more on the fundamentals of a digital platform, additional information can be found at www.dxc.technology/digital_enterprise.
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