SUSTAINABILITY
a key disruptor to operational risk management . As business critical data continues to move to the cloud , and be made available to anyone anywhere , traditional perimeter-based security and riskmodelling are becoming obsolete .
“ Organisations need to concentrate on when and why people interact with critical data . Additionally , as malware continues to evolve , the risks will multiply , leaving traditional security controls ineffective .”
It ’ s an ever-evolving space , and requires companies to be clear in their thought process and implementation . Jeff Skipper , an expert in organisational psychology who runs his own consulting firm , Jeff Skipper Consulting , believes it is an area which companies often fail to address .
When asked how important operational risk management is in the business world , he responded assertively .
“ Very ,” says Skipper . “ And it ’ s too often overlooked because risk management doesn ’ t seem like ‘ productive ’ work . You only feel the gap when something goes off the rails . However , the impact of that can be measured in revenue hits , reputational damage , and employee exits .
“ In my work with leading organisations in both the public and non-profit sectors , risk management is most commonly only given lip service . The leaders whom I advise are the ones who continually surface risk as a lever to remove obstacles and act .
“ Combining high risk awareness with the strategic use of what I call ‘ leadership capital ’ is a critical combination for successful initiatives . It has made the difference between 10 % and 100 % cost overruns .”
Skipper believes that poorlymanaged strategic projects are often at the root of organisational failings with regards to risk management .
“ It ’ s very common for the best people to try and avoid key projects because they are very demanding ,” he says . “ But having the best people with strong skills and leadership is key in these situations .
“ Secondarily , there are major gaps in future anticipation . We don ’ t give people time to think about the ‘ what ifs ’, which can be the greatest source of risk avoidance as well as innovation .” One of the key areas where innovation is expected in the ORM
40 Feburary 2018