What do you do if industry risk factors are evolving faster than expected?

As a risk manager, it's crucial to: 1. Identify emerging risk factors that are evolving faster than expected. 2. Assess their potential impact on the business. 3. Rank them in order of priority based on their likelihood and potential impact. 4. Create awareness among staff through a top-down approach, ensuring everyone understands the risks and their roles in mitigating them. 5. Continuously monitor the risks and their evolution, adjusting mitigants and controls as needed. This proactive approach helps organizations stay ahead of potential threats and minimize their impact.

As a risk manager, I take a proactive stance, identifying and addressing risks before they materialize. I don’t wait for risks to come to me—I actively seek them out, even going so far as to simulate potential risk events to evaluate and refine our response plans. By identifying loopholes in processes and designing strategies to manage crises, I ensure our systems are resilient and adaptable. Moreover, I recognize that with every risk comes the potential for opportunity. By understanding and navigating these risks effectively, I can create pathways for growth and innovation, turning challenges into opportunities.

In Risk Planning, the key will be to identify early with constant monitoring of both external & local/internal factors that may affect your business from world events to changes in interest rates to geo-political events and the level of impact at domestic and international markets, even as simple as a persona of brand and the ability to tackle the crisis head before it spirals out of control like how a boycott may roll downhill into a fire-ball. Look at the "Bud-Light" beer ads controversy and how Starbucks reacted too late to the Israel/Palestinian conflict issues which affected both sales and market share. Management Must Be DECISIVE & Be Brave.

It is important to prioritize real-time monitoring of these changes and update risk assessments promptly. I would work closely with relevant teams to adjust our risk management strategies, ensuring that we strengthen controls and mitigate potential impacts on our operations. Regular communication with senior management is essential to keep them informed and aligned with any necessary actions. Additionally, I would explore opportunities to diversify our risk exposure and enhance our resilience against these evolving threats.

Please don’t let people say “but we’ve always done it this way” - that might have worked then, but you’ll need to change or you’ll get caught out!

After assessing the new risks, promptly update your risk management plans. This entails revising your current strategies to accommodate the changes, which may include reallocating resources, adjusting timelines, or reshaping business objectives to effectively mitigate the new risks. Remember, plans, policies, controls, and processes are dynamic and should be monitored and reviewed regularly. Clear communication of these updates to all stakeholders is essential to ensure everyone understands the changes and is prepared to adapt. Maintaining open lines of communication and fostering awareness internally and externally enhances your organization's ability to navigate the evolving risk landscape effectively.

After assessing new risks, updating your risk management plans is crucial. As a leader, ensure to: Revise Strategies: Adjust existing risk strategies to address changes. Reallocate Resources: Shift resources where necessary to mitigate risks effectively. Adjust Timelines: Modify project timelines to align with the new risk landscape. Reshape Objectives: Realign business objectives if needed to address the risks. Communicate these updates clearly to all stakeholders, ensuring everyone is aligned and prepared to adapt to the evolving risks. This proactive approach will enhance organizational resilience and readiness.

When industry risk factors evolve faster than expected, updating your risk management plans is crucial. According to ISO 31000, defining clear objectives and criteria is fundamental to effective risk management. Start by reassessing new risks and revising your strategies to address these changes, considering your defined objectives and criteria. This may involve reallocating resources, adjusting timelines, or reshaping business goals. Clear communication of these updates to all stakeholders ensures alignment and readiness to adapt. #RiskManagement #ISO31000 #BusinessStrategy #StakeholderCommunication #ProactivePlanning #Adaptability #RiskAssessment #ObjectiveSetting #BusinessContinuity #EvolvingRisks

Ent?o, após identificar os novos riscos e entender as 'causas" que os tornam cada vez mais célere, o foco é definir estratégias quanto as atualiza??es para mitigá-los, em seguida compartilhar o quanto antes com todos os stakeholders. Após aceita??o da estratégia mais adequada, seguir com novas atualiza??es no que tange o monitoramento, isso inclui, com toda certeza, elabora??o de indicadores precisos ao cenário.

Risks should be monitored as an agile activity. This approach should ensure that the business receives assurance regarding the proactive adaptability of control designs in managing risks arising from changes in business environments. Also, seeing that external risks are the ones that often take the business unawares, with attendant significant impacts that may threaten the business's going concern, mechanisms should be put in place to monitor external events that bear directly on business objectives. This could include proposed government legislations, industry regulations, social factors, macro and micro-economic trends, and political considerations. These imperatives may be tracked using subject experts or via internal resourcing.

Fast-evolving industry risks requires collecting more data. That means that whole process should be more carefully monitored. Sometimes it leads to involve more people, sometimes it leads to involve more time. In every case, that data should be processed in a wright way, which means it should be established new procedure for data processing.

Num cenário onde fatores de risco evoluem rapidamente, t?o importante quanto o monitoramento constante e a agilidade no processo de gest?o de riscos é a adapta??o de conceitos e instrumentos para essa gest?o. N?o necessariamente na ado??o de ferramentas mais arrojadas - o que geralmente significa um investimento considerável -, mas, na própria metodologia. A inclus?o de critérios como "speed of onset" e "velocity" (ou a velocidade da materializa??o) podem ser muito úteis para focar a discuss?o nos riscos mais urgentes.

Muchas veces tratamos de tener todos los riesgos atados e identificados, no siendo esto posible en la mayoría de los casos en sectores muy dinámicos o de procesos más jóvenes. Por ello, es clave que el monitoreo esté actualizado y correctamente implantado en la compa?ía, de modo que, al identificarse un potencial riesgo, las medidas de control puedan estar en marcha en el menor tiempo posible. Este monitoreo, si se encuentra apoyado por una herramienta GRC, que facilite la comunicación entre las áreas donde se identifica el riesgo y las áreas de control, mejorará considerablemente los tiempos entre la identificación, comunicación, dise?o e implantación de las medidas de los planes de acción.

It’s often the simple, foundational actions that prevent the biggest issues. Regularly tracking key metrics, maintaining open communication, and staying proactive with routine tasks might seem mundane, but they are the first line of defense against potential risks. By focusing on these fundamentals, we create a solid foundation that not only addresses current challenges but also prepares us for unforeseen ones. Let’s not underestimate the power of consistent, basic monitoring—it’s where true risk management begins.

For larger organizations Team Engagement can require coordination between Business and Security Stakeholders. Business folks can enter emerging Risk Events they worry about and need the Security teams to quickly assess the likelihood of them happening given the current Threat Landscape. Security teams can also put new Threats into the platform and provide information on how they increase the likelihood of Risk Events that the Business worry about. With a standard process and methodology this Team Engagement process can be set up with division of roles and responsibilities, while contributing to a common platform. It is not necessary to force Business Stakeholders to become security experts, or Security Stakeholders business experts.

Team engagement is key in times of rapid change. Create a feedback loop for sharing real-time insights and suggestions, promoting a culture of continuous learning. Empowering team members with ownership of specific risk areas boosts accountability and leads to more agile, effective risk responses.

Engaging your team is crucial during times of rapid change. Ensure that all team members understand the evolving risks and are trained to respond appropriately. This may involve organizing additional training sessions or workshops. By fostering a culture of open communication and continuous learning, you empower your team to be an integral part of the solution, which can be invaluable when navigating unfamiliar territory.

- Notify the team immediately about the new risks and required actions. (An emergency channel is also a must have in such scenarios) - Coordinate with all stakeholders to ensure everyone is aligned on the response strategy. - Facilitate regular updates and discussions to adapt quickly to changing conditions.

Una estrategia de gestión de riesgos es tan efectiva como el eslabón más débil que la compone. No solo es crucial la capacitación continua de los equipos, sino también su firme compromiso en mantenerse alerta y actuar con rapidez cuando los riesgos evolucionen, amenazando las estrategias establecidas.

As a risk consultant, one idea I encourage is to establish a Risk Intelligence Hub with the support external experts with a dedicated team or hub focused on gathering, analyzing, and disseminating real-time risk intelligence. This hub should leverage advanced technologies like AI and machine learning with the ability to analysis big data fast. data source needs to be diverse and do not forget social media. However it is important that you engage industry experts who can provide insights beyond your firm and can help to validate your internal assessments. To further enhance your risk capability, you can collaborate with peers from other industries facing similar challenges to generate unique perspectives.

Seeking external insights is a valuable strategy for enhancing your risk management approach in rapidly evolving industries. By consulting with industry experts, joining professional forums, collaborating with peers, benchmarking your practices, and staying informed about industry trends, you can gain a comprehensive understanding of the risks and opportunities in your field. This external perspective can help you identify blind spots, uncover innovative strategies, and make informed decisions to navigate the challenges ahead

Siempre hay que estar alerta a los Eventos que acontecen en otras industrias y que pueden afectar a los riesgos de nuestra organización. Los eventos de pérdidas siempre retroalimentan los modelos de riesgos

Lateral thinking is critical in order to anticipate changes in existing and emerging risks. This requires lateral thinking to anticipate new risks that were not anticipated or black swan events ie a risks that has a major impact on business materialises. Third party experts are key to support a business develop that lateral thinking in a 360 degree view on any type of potential risk.

1. *Monitor and stay informed*: Continuously track industry developments, research, and news to stay ahead of emerging risks. 2. *Assess and reassess*: Regularly review and update your risk assessments to reflect changing circumstances. 3. *Adapt and evolve*: Adjust your strategies, processes, and controls to address new risks and mitigate their impact. 4. *Diversify and hedge*: Consider diversifying your portfolio or implementing hedging strategies to reduce exposure to rapidly evolving risks. 5. *Collaborate and seek expertise*: Engage with industry peers, experts, and advisors to share knowledge and stay informed

- Quickly reassess and update risk assessment frameworks, policies, and procedures to address evolving industry risks. - Implement targeted training programs as quick win and foster a culture of innovation and agility to stay ahead of emerging threats and ensure operational readiness.

- Promote a culture of adaptability within the team to respond quickly to new risks. - Encourage proactive problem-solving and flexibility in strategies. Let the right people take initiatives. - Foster open communication to ensure swift adjustments and collective readiness for change.

Risk Management enables executive decision-making. Risk understanding explains the connection between risk concerns and meeting company goals. Leaders are evaluated by growth/revenue, cost containment, and brand/reputation. Resilience and agility is how leaders respond to setbacks and pivot when the outcome path has unexpected obstacles. You should provide insights into the unintended consequences of risk outcomes for your company. Describe how your plan reduces uncertainty increasing the probability of achieving these three objectives. Then, provide risk mitigation options for responses to pivot around obstacles. This is what leaders are looking for in situations subject to high-velocity uncertainty.

In any team or organization at the end the lowest common denominator is in the weakest team or department. It is then super important a continuous review of the strength of all departments, the adherence to a robust control framework and the proactive education of all organization around the risk framework and the critical role of all members organization.