Data analytics and product customization have brood a vast array of business opportunities, but with sore risks. Those who wish to make the best use of these tools need a new approach to manage risk.
In this article at Brink News, Tom Ivell explains that by giving risk managers a wider mandate to ensure that neither the firm hampers the pursuit of innovative propositions, nor compromises on cybersecurity, data analytics and product customization tools can be used well.
Age of Innovation
In the present age of business innovation, innovation processes are separated from the conventional business, as firms detach development teams in a bid to let them embrace agile methodology. Innovation is more about bringing drastic changes in the risk management ways. Establishing an explicit appetite for innovation risk is the only way to bring positive outcomes.
Innovation Risk Appetite
To provoke an explicit need for risk appetite in innovation, risk managers need to work with higher authorities of the organization. To go out of their way to innovate, employees need to be given adequate rights to take the risk. These risks have to be weighed against potential returns.
New Controls for New Risks
The desire to suffice digital intentions and to meet the upbeat market trends, it is essential to change the risk profile of the organization. Technology-related risks like the flexibility to cyber risks may increase dependence on technical infrastructure. This may disband the conventional manual alternatives.
Also, the lack of sincere monitoring may turn into cyber fraud, as observed in the initial stages of digital propositions. Therefore, to guard the organization, the risk managers need to engage at all stages of development, testing, and implementation, as well as regular review.
Click on the following link to read the original article: http://www.brinknews.com/how-to-update-your-risk-management-approach-for-the-age-of-business-innovation/