A key lesson from the current crisis is that low-frequency, high-severity events can occur at any time. The looming question, therefore, is which other such events are on the horizon and how prepared are we to manage them?
To better tackle these evolving risks, organizations need to go beyond the conventional risk identification and mitigation measures and cultivate a culture of risk awareness. The objective is to ultimately become a future-ready organization—one that is always on the front foot to deal with any incipient risk or challenge while ensuring efficient business operations. To address this, risk leaders will need to quickly improve their oversight over multiple potential risks and re-think the risk management framework for proactive risk identification and preparedness.
This insights provides an overview of how organizations need to quickly pivot and respond to new risks with increased focus on risk awareness, automation, and establishing risk appetite frameworks. It also details: