How can risk management drive business growth?

While the primary objective of ERM is to safeguard the organisation, it's imperative that the function clearly understands the levers of growth so that the risk assessment is aligned to the strategy 1. Identifying and assessing risks including emerging risks , that also looks at opportunities not just negative impacts , helping in optimisation of resources aiding to better budget management 2. Creating a trust proposition through a robust control environment for clients 3. Creating a robust GRC framework with regular KRIs, which can help with early warning signals 4. Assess the organisations risk culture that helps risk based decision making 5.Using tech to help model business risks to strategic outcomes that can be leveraged for growth

Risks Management should not just focus on traditional 'negative' risks but also 'positive' risks i.e. opportunities. Both contribute to business growth. Risks are potential obstacles that must be highlighted for awareness while opportunities have a more direct impact towards growth. Just keep the message practical and not theoretical. Lastly, add a recommendation - don't just highlight problems, also put in an effort to recommend solutions.

Risk management is always there in any organization, how do we mitigate the same. We do an audit of the organization and identify the areas of risk. We also need to provide how we can overcome the risk by giving solutions to the same. Both identifying, evaluating and implementing solutions is the way forward

Cost effective business solutions, value delivery by cutting operational costs by evaluating & categorizing risks. Empowering teams to openly discuss risks & opportunities and fail fast. Putting effective risk responses, by having a collaborate risk assessment and evaluating risks, and converting them into opportunities. E.g. one of the cases was backup drive was not there for client artifact repository. Where risk of loosing the data was high. Finding potential opportunities, in risks is one way to drive business growth, by exploiting risk and suggesting solution to client to provide repository for the artifacts.

- By continuously bringing level of uncertainty down & hence reducing the underlying risks - By focusing on opportunity side of risk & facilitating growth - By ensuring the growth becomes not a point in time but sustainable & orderly growth

Recent RBI directives on commercial card transactions and the emphasis on robust KYC-AML practices in payments banks underscore the importance of achieving product-regulatory fit alongside product-market fit. This dual focus ensures not only market relevance but also compliance with evolving regulations, safeguarding against potential risks while fostering innovation and customer trust. Balancing these aspects is key to sustainable growth in the dynamic financial landscape.

Impact of the risk can be 2, negative or downside and positif or upside. Downside comprise of threat, vulnerability and also potential impact to the goals. While upside comprise of opportunity, exposure and also potential impact to the goals. By separating this risks, it can helps the organization achieve business growth because it will be clear, understandable risk description and effective treatment. So, the organization can treat well the downside and also take the advantage of the upside.

Risk management can catalyze business growth by identifying opportunities and mitigating threats. It enables a strategic approach to analyzing market trends and competitor dynamics, thereby uncovering niches for innovation. By systematically evaluating internal and external factors, businesses can not only avoid pitfalls but also leverage their unique strengths to capture market share. Furthermore, preparing for potential disruptions ensures resilience, allowing companies to maintain operations under adverse conditions and recover swiftly. This adaptability fosters a culture of continuous improvement, enhancing overall competitiveness and positioning the company for sustainable growth.

A robust risk management strategy has the power to propel business growth by establishing a solid foundation to evaluate and minimize potential risks that may arise within the organization. This not only instills a sense of assurance in decision-making and strategic planning but also opens up avenues for businesses to fearlessly explore innovative ideas, expand their horizons, and make strategic investments. As a result, profits soar and sustainable growth becomes a reality. Moreover, a well-executed risk management approach adds to a company's reputation and credibility, making it an attractive prospect for stakeholders, investors, and customers who prioritize stability and security.

Risk management can drive growth in the following ways: 1. Reducing or avoiding accidents/incidents or unexpected stops due to measures to prevent the materialization of most risks and reducing the impact of the rest, with control and/or risk transfer measures. 2. By reducing the impact of risks, spending is reduced, so the company has more resources to improve processes through investments. 3. Risk management improves the company's reputation and can boost sales 4. Risk management allows you to make informed and data-based decisions. By understanding the risks, you can choose more effective strategies for growth.

Risk Management is the company’s safety net. It will give the company confidence that it can take risks and be more aggressive in its strategy, while maintaining a secure environment in the background. There is no business without taking risks and there is no investor with unmanaged risks.

In the area of controllership, risk management can drive business growth by providing a comprehensive and strategic view of the financial threats and opportunities facing the company. For example, by conducting a financial risk analysis, the controllership team can identify potential economic instabilities, currency fluctuations or regulatory changes that could impact the organization's operations and financial results. In addition, by ensuring compliance with financial regulations and best accounting practices, controllership strengthens the company's credibility with investors, creditors and other stakeholders.

For all financial transactions that involve counterparty risk, there needs to be confidence in the staying power and financial strength of the counterparty. Thus, you have rating agencies and regulators. A good risk management program can greatly improve and supplement the ratings process and provide additional confidence to others, but only if it is made publically available to counterparties upon request during due diligence, adheres to a standard risk taxonomy to facilitate comparisons across like institutions, and is maintained. I have seen due diligence efforts reduced 90% and deals between financial parties struck quickly in these situations, whereas without this baseline info the process may grind on for months.

Identificação e avaliação de riscos e vulnerabilidades/ameaças; como forma propulsora de fonte de dados para melhoria e ganho de robustez na governança/estrutura de seus controles internos; insights e fonte de dados estratégicos; automatizações e/ou transformações digitais com base nas avaliações e assessments realizados; etc.

In healthcare, proactive risk management strategies such as predictive analytics for patient outcomes reduce treatment costs and enhance efficiency. Implementing cybersecurity measures safeguards sensitive patient data, fostering trust and reputation. Investing in research and development to mitigate regulatory risks ensures compliance while driving innovation and market differentiation. Additionally, strategic partnerships with technology firms for telemedicine solutions expand service reach, driving revenue growth and market share in the rapidly evolving healthcare landscape.

In my experience, a practical and cost-effective alternative to boost risk management and, consequently, business growth, is to adopt an approach based on the experience and knowledge of the team. Start by fostering an organizational culture that values risk awareness and responsibility. I encourage employees to report concerns or observations related to the risks they identify. I highly value feedback and learning sessions, where staff can share experiences, lessons learned and best practices for dealing with risk situations. In addition, I take advantage of the specialized knowledge and experience of leaders and employees to develop specific risk mitigation strategies for each area of the business.

A prime illustration of risk management driving business growth can be demonstrated by Netflix, which effectively navigated the risk of transitioning from DVD rentals to streaming services. They achieved this by investing in original content and adapting their business model to meet the evolving market demands. As a result, Netflix experienced rapid growth and remarkable success. By actively managing and mitigating risks, businesses can safeguard themselves from potential setbacks while also seizing opportunities for expansion.

Best practices for risk management driving business growth include integrating it into strategic planning, conducting regular assessments, establishing clear accountability, utilizing technology for enhanced detection, fostering a risk-aware culture, and continuously monitoring and evaluating effectiveness. By aligning risk mitigation efforts with business objectives, organizations can proactively identify and address emerging threats and opportunities, ultimately driving sustainable growth and success.

1.Integrated Approach: Integrate risk management into all aspects of business operations, from strategic planning to day-to-day activities. 2.Continuous Monitoring: Regularly monitor and reassess risks to adapt to changing circumstances and ensure alignment with business objectives. 3.Engagement of Stakeholders: Involve stakeholders at all levels of the organization in the risk management process to ensure buy-in and foster a culture of risk awareness. 4.Data-Driven Decision Making: Utilize data and analytics to assess risks accurately and prioritize mitigation efforts effectively. 5.Scenario Planning: Conduct scenario analyses to anticipate potential risks and develop

There is a direct correlation between comprehensive risk management practices and financial performance. Firms actively engaging in risk management report 20% higher revenue growth compared to their counterparts, as they effectively leverage data and analytics to inform decision-making processes. Strategic use of risk management identifies potential challenges and opportunities, leading to optimal resource allocation and operational efficiency. Integrating risk management with strategic planning encourages the exploration of new markets and the development of pioneering products. Your company will not only safeguard against potential threats but also position itself for accelerated growth.

As healthcare rapidly digitizes, organizations that demonstrate risk management maturity attract greater investments, fueling growth. Our white paper “The Cybersecurity Compass” is an indispensable guide for leaders navigating this passage, providing concrete steps to integrate security into strategic planning. We delve into risk assessments that balance innovation and protection, communication protocols and response plans that maintain trust amid crises, and cybersecurity key performance indicators that quantify preparedness. By committing to transparency and accountability around threats, healthcare organizations can confidently adopt advanced technologies supporting the next generation of care.

In my experience, to obtain more information regarding risk management, I recommend: 1. Follow people who write continuously about risk management in blogs, magazines, etc., or who make videos or podcasts about it. 2. Attend risk management seminars and/or conferences of professional associations 3. Read general or risk-specific risk management books from leaders in the area. 4. Stay informed of global events and understand how you could avoid the materialization of said risks 5. Finally, join risk management communities or forums to share information of different risks in different places

In my professional practice as a risk leader, I have learned a lot about risk and business growth using the strategies below. - Surveys with managers across the company on risk assessment. - Focus groups to discuss and provide information about the company's risks. - Interview with lawyers and external consultants; - Industry associations can provide a forum for discussion and exchange of information about risks in their industry. - Trainings, short courses, books and articles can be great sources of information.

Existe una certificación que se llama COSO ERM y es una muy buena capacitación sobre riesgos a nivel mundial porque aplica para todos los sectores.

Attend Industry Conferences and Seminars: Participate in events focused on risk management and business growth to network with peers and learn from industry leaders. Follow Thought Leaders on Social Media: Keep up with the latest trends and insights by following risk management and business growth experts on platforms like LinkedIn or Twitter. Engage in Mentorship Programs: Seek mentors who have successfully integrated risk management into business growth strategies for personalized advice and guidance. Experiment with Risk Management Tools: Explore and experiment with different risk management software and tools to understand their impact on business decisions and growth firsthand.

Risk management is too complicated and multi-faceted to be squirreled away in an ERM department or individual functional risk area. You need good technology for data analytics, but more important, you must make everyone in the organization aware of and committed to the risk management process. To the greatest degree possible, risk awareness must be pushed as low and as broad in the organization as possible for it to be effective.

I think it's crucial to integrate technology like data analytics to improve risk prediction and decision-making. Embracing resilience by learning from unexpected challenges can strengthen business strategy. Knowledge sharing about risk across all departments ensures a unified, informed approach to risk management, fostering sustainable growth. In this context, remember the words of Warren Buffett: "Risk comes from not knowing what you're doing." This highlights the power of knowledge and preparation in turning risk into opportunity.

Growth can not happen in a vacuum. it needs effective & efficient utilization of scarce resources & that to productively towards a finite end result. While we may plan strategically & implement flawlessly towards perfection & excellence to achieve the desired targeted growth, there could be situations when things may not go our way. THERE could be things that could go wrong & not as anticipated which would derail what we were seeking for. Hence we need to manage our risks better by proactively being on top of them so that things would go as planned & nothing could impede what we seek to fulfill. Risk management us therefore utmost necessary for growth as things could go bad some times, every time & any time.

n the healthcare industry, leveraging predictive analytics and AI-driven diagnostics can revolutionize risk management. Implementing wearable devices and IoT sensors for real-time patient monitoring enhances early detection of health risks, reducing hospital readmissions and treatment costs. Embracing blockchain technology for secure health data exchange ensures privacy compliance and minimizes the risk of data breaches. Additionally, integrating genomic data analysis into personalized medicine approaches enables targeted interventions, optimizing patient outcomes while mitigating treatment risks. These disruptive ideas not only elevate patient care but also drive operational efficiency and business growth in the healthcare sector.

Here's What Else to Consider: 1️⃣Technology Integration: Utilize advanced analytics, AI, and machine learning to predict and manage risks more effectively. 2️⃣Stakeholder Engagement: Engage with stakeholders to understand their risk perceptions and incorporate their feedback into risk management strategies. 3️⃣Continuous Improvement: Adopt a mindset of continuous improvement, regularly updating risk management practices to adapt to new challenges and opportunities.