How risk powers performance: Risk Intelligence 2.0
Grab'n Go Summary / 26 September, 2018
Deloitte organized a Grab'n Go breakfast event to discuss how risk powers performance. The theme of the discussion was how to have built-in rather than bolt-on risk management for the whole organization.
Deloitte UK's Senior Partner Tim Archer introduced the integrated risk management approach to navigating today’s increasingly uncertain and highly regulated business environments where, for example, Trump and Brexit have impacted organizations' strategies. To function effectively in a demanding environment, risk management must be integrated into the business, taking into account where and how the business experiences risk. Integrating risk management rather than treating it as a tacked-on process lets organizations match the speed of change.
Additionally, as the focus of the organization must be to work efficiently, risk management functions must pay attention to the vital ratio between conformance and performance testing. In other words, it is important that an organization’s risk management testing or monitoring not only take into account the necessity of complying with external and internal requirements, but also whether processes are achieving the desired business and strategic outcomes.
Deloitte Finland's Senior Manager Tapio Tierala shared some examples of how analytics can be used to power risk management's performance. Using analytics-powered risk sensing, organizations can access a configurable visualization of emerging risk insights.
Text Analytics such as DocQMiner can extract data from documents with surgical precision and minimize the time needed for users to extract specific attributes, such as personal data, from unstructured documents. Continuous Controls Monitoring in the new era of risk management can deliver actionable insights from dynamic dashboards driving behavioral change to all three lines of defense.
Ville Hietalahti, Senior Vice President, Enterprise Risk Management at Stora Enso, shared Stora Enso's experience with implementing integrated risk management to their business. For Stora Enso, providing relevant information for decision-making is essential. Thus, their vision is to make risk intelligence a vital element in Stora Enso’s Winning Culture.
The business resilience collaboration program started with risk management, internal controls and internal audit functions agreeing on common approaches and aligning their annual clocks, as well as performing a baseline assessment. Based on the collaboration and operating model, Stora Enso can develop integrated processes and procedures as well as a holistic approach to digitalization.