1. MONITOR ENTERPRISE RISK IN REAL-TIME
The COVID-19 crisis will, in the short term, require firms to focus on one thing: survival. However, as the crisis hits and rapidly unfolds, too many firms will find their enterprise risk management approach and systems lacking. Typical issues that will quickly become apparent are;
- Too many risks that do not threaten the survival of the firms are reported and managed, creating noise within the executive & board. However, too few (if any at all) that genuinely threaten survival are given the attention they require.
- Related to the first point, firms have a habit of monitoring ‘known risks’; risks which are relatively easy to monitor. Unfortunately, this creates a false sense of comfort and control. Executive and Boards need to regularly and robustly challenge the risks reported to them, bringing to bear their experience and what they see in the real-world.
- The risk management ‘drumbeat’, particularly within enterprise risk is aligned to monthly or even quarterly executive and board meeting cycle rather than the business ‘drumbeat’ i.e. real-time.
KRM22’s Global Risk Platform provides applications to help you address your firm’s regulatory, market, technology and operations risk challenges and to manage your entire enterprise risk profile. KRM22 is a public Group listed on AIM and headquartered in London, with offices in several of the world’s major financial centers.