Even the smallest of organizations often have a complicated web of third-party relationships and interactions i.e. global supplier, client relationships, business partners etc. Midsized organizations specifically are encumbered by a constant unique challenge, as they face many of the same problems as large organizations but lack the resources and staff to adequately address it. They naturally try to react and put out fires, addressing risk and compliance in solitary approaches, but they really need to step back and think strategically and not tactically. They should look to how they can strategically address risks across the organization.<\/p>\n\n\n\n
The trinity of Governance Risk and Compliance is often misapplied as a result of these uncoordinated and nonstrategic approaches that occur as a result of departmentalized thinking and corporate egos that get in the way of developing a sound GRC strategy to protect the organization from risk exposure and achieve business objectives. Risk is pervasive; there can be numerous departments throughout these organizations that manage risk with completely different approaches and thoughts on what risk is and how it should be measured and managed.<\/p>\n\n\n\n
The depth and breadth of risk environments that midsized organizations have to monitor can extend throughout political, regulatory, and operational risks. Managing business change and risk in these scattered approaches has buried many midsized organizations. Developing a GRC strategy and technology architecture to link and measure risk to strategic objectives and monitor performance against those objectives, therefore, is critical. The outcome of this is improved decision-making, better return on investment across the business, improved profitability, and a better customer experience.<\/p>\n\n\n\n
Resiliency, within this context, can be no better defined than within the official definition of governance, risk, and compliance (GRC), defined and developed by OCEG \u2014 which is a capability to reliably achieve objectives, while addressing uncertainty and acting with integrity.<\/p>\n\n\n\n
Gaining a complete understanding of organizational and operational resilience requires a holistic and comprehensive understanding of the context of the organization, relating to meeting organizational objectives and strategy, in order to be able to manage risk and disruption in the pursuit of achieving overall business objectives.<\/p>\n\n\n\n
The Optimized Organization<\/strong> Interrupted<\/strong> Scattered\u00a0<\/strong> Dynamic\u00a0<\/strong> Achieving Ideal State Operational Resilience:<\/strong> Making this connection is a key component of operational resiliency. Resiliency requires that the organization manage the interconnection of risk functions such as information management, third-party management, compliance, operations, performance. Since operational risk management modeling encompasses a multitude of risk functions and departments throughout the organization, it is mission critical that these functions collaborate and are integrated in order to connect ideal state ORM to the bigger picture of operational strategy in order to achieve a transparent and true state of resiliency.<\/p>\n\n\n\n Historically, this risk is managed in isolated silos that are disconnect from the unified approach that enables ideal state . ORM is often misapplied as a result of these uncoordinated and nonstrategic approaches confined in silos and corporate egos that get in the way of developing a sound operational risk strategy to protect the organization from risk exposure and achieve business objectives. Risk is pervasive; there can be numerous departments throughout these organizations that manage risk with completely different approaches and thoughts on what risk is and how it should be measured and managed.<\/p>\n\n\n\n An integrated information and technology architecture is critical for organizations to build a more thoughtful and strategic approach to operational risk strategy. Organizations need complete situational awareness and vision into risk scattered across systems, operations, processes, relationships, and data in order to fully achieve operational resiliency, and to gain an understanding of the full impact of risk throughout the organization holistically and its impact on strategy, objectives, and performance.<\/p>\n","protected":false},"excerpt":{"rendered":" Even the smallest of organizations often have a complicated web of third-party relationships and interactions i.e. global supplier, client relationships, business partners etc. Midsized organizations specifically are encumbered by a constant unique challenge, as they face many of the same […]<\/p>\n","protected":false},"author":3,"featured_media":9015,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50,49,48],"tags":[],"class_list":["post-9011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-governance","category-risk-management"],"yoast_head":"\n
In order to fully understand the state of operational resiliency, first, we must consider the state of the chaotic, modern business environment. Modern organizations are:<\/p>\n\n\n\n
The evolving nature of modern business added on top of the complexity of scattered operations, and decentralized\/siloed information, makes disruption to operational objectives inevitable. Modern organizations have a need to manage high amounts of internal, as well as external, risk data across a multitude of processes, relationships, and functions in order to gain an understanding of organizational risk, compliance, and performance. The overall volume of risk, and the speed in which it can cause disruption, is capable of completely overwhelming the organization and can threaten to bring the business to a near halt at a time when agility is crucial to the pursuit of the overall objectives. What is significantly alarming is the extent of the issues that is so limitedly understood by so many senior executives in all corporations, large and small.<\/p>\n\n\n\n
Business has changed dramatically. The old brick-and-mortar approach has become extinct, and modern business has become an interconnected snare of often global relationships and transactions that can affect all facets of the organization.<\/p>\n\n\n\n
The nature of business in our contemporary world is very dynamic. Change is a given, and technologies, processes, and objectives are evolving simultaneously with changes in regulations around the world, risk, and governance procedures. Meanwhile, distributed operations are growing, creating a multiplicity of potential risk environments for the organization across the globe.<\/p>\n\n\n\n
In order to achieve ideal state operational resiliency, organizations must attain a comprehensive real-time view of the full scope of the context of the organization, in order to achieve an integrated view of risk across the business i.e. organizations must gain a full picture of how risk can impact its processes, products, services, clients, suppliers etc. And how it interconnects throughout the organization. Business continuity and operational risk management (ORM) are therefore intrinsically related and connected and should be integrated together.<\/p>\n\n\n\n