Understanding risk intelligence in today’s competitive business landscape.

Businesses may face huge competition in the current market scenario making it the most competitive period. To generate more economic value, companies are increasingly relying on advanced digital technology infrastructure. This transition to the digital world not only promises benefits to organizations, but also introduces a unique set of business risks and challenges. Any kind of risk has the potential to topple business strategies and threaten brand and reputation as well. Devising a comprehensive business risk intelligence strategy can help address a wide range of risks facing an organization.

Commencing on a IT risks in business requires overcoming challenges that include resource allocation, operational bandwidth, stakeholder support, and more. Risk intelligence significantly involves risk awareness, risk understanding, risk evaluation, risk projection, risk assessment and risk response.

Sustainability in Business

Many companies have now started considering sustainability policies in their businesses. They are looking to achieve a sustainable business approach by taking robust steps; for example, saving energy, creating green products, and retaining and inspiring employees. All of this tends to assist companies to capture value through growth and return on investment.

In a survey of executives on how their companies see and manage issues related to sustainability, McKinsey found that larger shares of executives since last year say sustainability programs make a positive contribution to their companies’ short- and long-term value. As per the survey report, 33 percent of respondents reported that their companies’ top reasons to address sustainability include improving operational efficiency and lessening costs. Followed by this concern, 32 percent of executives responded to corporate reputation, while 31 percent reported alignment with the company’s business goals, mission, or values and 27 percent to new growth opportunities.

Considering this evidences, we can see sustainability is becoming more vital for all companies, across all industries. Take beverages giant Coca-Cola. The company has developed ambitious agendas, like increasing focus on water stewardship and setting targets on water replenishment. In addition, carmaker BMW has also made strides toward sustainability through energy efficiency and pollution reduction.

Improving Sustainability with Risk Intelligence

Leveraging corporate performance and risk management can improve businesses’ environmental efforts and create value. Many enterprises take risks and similar concerns while making investment strategies. Most successful businesses and investments are the result of risk taking. To manage business risks effectively, organizations must have solutions in place that will bring the business context to the systems. Only developing risk-intelligent organizations will help leaders to win over distinct global threats, such as over-flowing information, development of advanced technologies, increased competition, need to build innovative business models, geopolitical landscape, delivering data- and technology-driven experiences to customers, and more.

In response to address these growing threats and challenges, businesses need to embrace a risk management approach that defines a sustainable future. Specifically, most organizations do not leverage proactive data monitoring and risk analytics in their risk and compliance initiatives. Many traditional methods, siloed risk assessments and control monitoring efforts of businesses are ineffective. Hence, enterprises need to approach governance, risk and compliance (GRC) processes, reflecting the development of sustainable business.