"The internet provides its users will valuable resources for research and analysis, and for risk management the new innovation is utilising the richness of data on the internet as a critical tool for success."
We share with you an infographic on risk management which provides interesting insight into the current trends relating to internet searches on risk management.
Operational risk is a topic that has seen a significant rise in the amount on "online chatter", particularly since early 2000. Some interesting statistics are presented in this infographic on operational risk, not the least is the amount of postings on operational risk represents no more than 10% of the amount of postings on the internet for the iPod since 2000!
The complexity with operational risk management is that concentrating on management's understanding of the risks (being the top-down view) can inherently limit the true depth of risks that exist. It neglects the risks associated with the operation of complex individual processes, which can each individually impact the organisations performance.
A “scenario thinker” may be able to overcome paralysis in such a situation. He or she will recognize the point beyond which the effort to work out what will happen produces diminishing returns, and will refocus sooner on a different question:
“What do we do if...?” and then: “What does this mean for what we do now?”
The ability to distinguish between risks and issues is one of the most fundamental skills a manager needs in order to effectively manage their business.
Innovation is expected and required for any business or function to grow and develop over time. The risk management function is no different, hence risk must embrace innovation.