As the complexities in the world rise and risks aggravate, organisation to deal with new realities, rely on Risk Intelligent Framework. In the contemporary times, businesses view risks as not only to minimise the impact but also as an opportunity for value creation. By building risk-intelligent frameworks, organisations are able to secure their assets, people and processes.
How to create a Risk Intelligent Framework for your organisation?
- Define organisational goals and objectives
- Defining organisational needs and objectives to identify potential risks relevant to your organisation with respect to region, industry, and market.
- Understanding the key purpose of the risk intelligence framework whether it is to enhance decision-making, secure assets and processes, or ensure business continuity.
- Risk Identification
- Identifying and categorising the various risks including external risks and internal risks in a risk inventory affecting different parts of organisation.
- For instance, Physical security risks, cybersecurity risks, operational risks, reputational risks, Regulatory risks, etc.
- Establishing Data Collection Method
- Developing a data collection method to have a comprehensive data from various sources to gain better insights with regard to organisational processes, structures, and assets.
- Combination of internal data including internal audits, budget, reports, and feedback, and external data including OSINT, and market analysis.
- Using the right technological tools as AI and automated tools for data collection and analysis tailored to specific needs.
- Risk Assessment and Prioritisation
- Identifying and compiling all the potential threats that may impact the organisation.
- Understanding the specific vulnerabilities i.e. gaps or lacunas within the organisational structure or operation process which makes the organisation susceptible to the threat more.
- Compiling all the potential risks and prioritising them with respect to the likelihood of their occurrence and the impact of the risk.
- Establishing a Risk Matrix for all the identified risks.
- Creating heat maps to understand the complex interdependence between different risks.
- Risk Mitigation
- Elaborating various risk-mitigating strategies with respect to various categories of risk.
- Standardising risk parameters and establishing protocols such as Standard Operating Procedures.
- Establishing preventive controls to reduce the risks such as policies, guidelines, and technological tools, and corrective controls to deal with the disruptive events to minimise the impact.
- Monitoring and Reviewing
- Monitoring and evaluation of risk-mitigating strategies put in force for identifying gaps and opportunities to further strengthen risk management.
- Monitoring the evolving risks and new developments with the help of technological tools.
- Linking the risk-mitigating strategies with performance measures and enabling new innovation through incentivization.
- Establishing Communication Channels between Stakeholders
- Establishing key lines of communication between various stakeholders to keep them abreast of the risks and standard protocols.
- Engaging key stakeholders within the organisations along with external experts to ensure a coordinated response.
- Promoting Risk Awareness Culture
- Ensuring a user-friendly interface and adequate training for employees and other stakeholders.
- Promoting a risk-aware culture within the organisation.
- Integrating Risk Intelligence in Decision Making
- Embedding risk intelligence in decision-making across various functional roles such as capital allocation, strategic planning and expansion, product expansion, and supply chain management.
- Establishing an early warning system for specified risks beyond a certain threshold to notify top management boards and other stakeholders.
A common Risk Intelligent framework provides measures to address the multitude of risks across various organisational areas including functional risks, strategic risks, compliance risks, security risks, and operational risks, etc. With the help of OSINT and predictive analytics, organisations can identify emerging risks and put in place measures to minimise the impact.
Partner with Mitkat to build a robust Risk Intelligent Framework
Mitkat aids and guides businesses to become more Risk resilient and Risk Intelligent in a complex risk landscape. Our services including Risk consulting and Security Design, Protective Services, and cyber security help companies to become risk-aware. Our AI-powered operational risk monitoring tool, datasurfr combined with expert insight enables companies to stay abreast of evolving operational risks and emerging developments.