Risk Management Lifecycle: 5 Steps to a Safer, More Resilient Organization
Alert Media – Lauren Karcz
There are five phases in the risk management lifecycle.
1) Risk identification
2) Risk analysis
3) Risk mitigation planning
4) Risk management implementation
5) Risk management review and tracking
This article highlights three common challenges in the risk management process:
1) Static plans for dynamic risks: Business operations are fast-paced and constantly evolving, making it easy for risk management plans to become outdated.
To avoid this, make risk management part of project management, conduct periodic risk assessments, and schedule comprehensive plan reviews.
2) Organizational gaps and siloed risks: Poor communication between departments can lead to organizational gaps where nobody takes responsibility for addressing risks and siloed risks that only a few individuals are aware of.
Engage stakeholders throughout the organization to prevent gaps and silos and ensure everyone is involved in the risk management process.
3) Regulatory compliance: Some industries have strict risk management requirements from regulatory agencies.
It’s important to thoroughly understand relevant regulations before initiating the risk management process to avoid fines or costly remediation efforts.
Additionally, the article suggests three third-party tools that can enhance the risk management process:
– Mass notification system: Helps keep teams connected by sharing real-time notifications and facilitating coordinated responses to threats.
– Artificial intelligence (AI) and machine learning (ML): Enables quick exploration of potential risks through predictive modeling, allowing organizations to focus on the most important risks.
– Threat intelligence: Offloads the analysis work by using a provider to gather actionable intelligence on risks that organizations may not have the resources to track comprehensively.
By following the five-step risk management lifecycle and addressing these challenges, organizations can become safer, more resilient, and better prepared to handle unforeseen risks.
Link: https://www.alertmedia.com/blog/risk-management-lifecycle/