Adapting of digital risk management strategy is crucial to drive rapid digitization in organizations. Read on to know more…
In the age digitalization, no business can escape exposure to at least some form of digital risk. This new reality makes digital risk management a business imperative that no company can afford to ignore. We have all seen the exponential growth and adoption to digital products and technologies. It is the breakneck speed with which these technologies have been produced and adopted by consumers and organizations alike that has made the concept of “digital risk management” so hard to define.
Defining the Terms
As organizations become more interconnected to their supply chain, customers, and partners, the assets that security teams have been trying to protect become exposed. Adversaries take advantage of this exposure, making use of weaknesses, leveraging exposed data, and impersonating online brands. Unmanaged, this leads to the loss of sensitive corporate data, violation of privacy laws, and damaged reputations for organizations. If we want to manage these new, digital risks, we need to start looking outside the traditional perimeter.
The problem is that the threat landscape is so large and diverse that it can be difficult for small businesses to know what threats to guard against and how to make sure they’re as protected as possible. Adapting of digital risk management strategy is crucial to drive rapid digitization in organizations. Significant improvements in risk management can be gained quickly through selective digitization — but capabilities must be test hardened before release.
Most institutions are digitizing their risk functions at a relatively slow pace, taking modular approaches to targeted areas. A few have undertaken large-scale transformation, achieving significant and sustainable advances in both efficiency and effectiveness. Either way, in the risk context, care must be taken when adapting test-and-learn pilots commonly used in digital transformations in other parts of the financial sector.
The organization and operating model will require new capabilities to drive rapid digitization. Although risk innovation takes place in a very specific, highly sensitive area, risk practitioners still need to create a robust culture of innovation.
Role of CISO
A fact of digitization, digital risk management is the role that CISOs play in adopting these digital technologies. Digital risk management and cybersecurity in most cases is seen as interchangeable. The CISO must be a collaborative team to ensure business growth while staying secure. It is in cases of digitization and digital risk management that the CISO is at the greatest risk of appearing to be a hindrance rather than an enabler of growth. Without the proper solution to enable the CISO to manage the compliance and risks of a digital organization, they will be hard-pressed to do their job. Given that digital technologies are dynamic, static tools used to assess the risk will leave an organization open to more and more threats.
A Brief Conclusion
Digital transformation and new business model’s adoption are now a reality. That’s why understanding and managing their associated risks in an agile and automated way from the business perspective is key to making the right decisions at the right time.