What are the emerging trends and opportunities in risk management consulting that you are excited about?

I believe the areas of GRC for small to medium businesses are the opportunities for risk management post COVID. The increase in online threats as well as the SMB markets are an indication of this.

Your customers want and need - and above that, deserve - to know what steps you are taking to protect their privacy, data, and information. The more clarity you show in these areas, the more trust gets built; the better for your business' bottom line.

Digitalisation of both business operations and risk management activities is paramount to maintain a competitive edge. Understanding what this means in terms of data protection and resiliency at enterprise level is critical. This is a paradigm shift. Digitalisation provides significant benefits but it also completely changes the threat and vulnerability landscape of a firm. This requires additional risk expertise that are still developing across the industry.

Digital transformation can involve various technologies such as cloud computing, artificial intelligence, Internet of Things (IoT), and data analytics. The COVID-19 pandemic has accelerated the need for digital transformation as businesses were forced to adapt to remote work and virtual interactions. Digital transformation can offer numerous benefits to organizations, including increased agility, innovation, and competitiveness. However, it also comes with significant risks, such as cybersecurity threats, data privacy concerns, and the need for reskilling and upskilling the workforce.

In my experience, demand for ESG reporting is growing due to increased scrutiny from stakeholders, investors, and regulators. The foundational initiative before reporting is setting up the Data and Tech strategy. At EY, we find the more focus is put on "steering" of ESG topics (maybe also on decision-making processes) the more we see clients go for Data Lake / Data Fabric solutions. Whereas some clients like to go for tool-based solutions, where they engage third party services to solve for the immediate ESG report. Our team has been helping Financial Services Institutions on a variety of reporting needs. Our advice is informed by where our clients are on their ESG journey.

ESG factors refer to the environmental, social, and governance aspects of a company's operations that can impact its long-term sustainability and financial performance. These factors include issues such as climate change, diversity and inclusion, human rights, and ethical business practices. Investors and customers are increasingly focused on ESG factors and are demanding more transparency and accountability from businesses in this area. By addressing ESG factors and integrating sustainability into their operations, businesses can improve their reputation, attract and retain customers and employees, and enhance their long-term financial performance.

I agree! This connects with the need to digitalise risk management capabilities and strengthen data analytics as well as develop predictive risk analytics.

Agile and adaptive risk management is an approach to managing risks that emphasizes flexibility and adaptability. It involves continuously monitoring and assessing risks and adjusting risk management strategies as needed. This approach is particularly relevant in today's rapidly changing business environment where risks can emerge and evolve quickly. Agile and adaptive risk management can help businesses to identify and respond to emerging risks in a timely and effective manner, minimizing their impact on the organization. This approach involves collaboration across different functions and teams within the organization, as well as a willingness to experiment and learn from experience.

Risk management is not just about worse case scenarios. When you shift thinking you can open your business to new opportunities, partnerships, or potential investors that will increase the value of the business.

We are in an era of value creation. Risk management of cyber risk, AI risk, and autonomous vehicle risk must strike a balance between innovation and disrupting innovation. As developers and manufacturers embrace security by design, we could see a substantial risk reduction. On the other hand, if security is an afterthought, we could see a focus on loss mitigation outweighing the desire for innovation and value creation. The scales may tip in either direction based on the human factor. Risk management is more valuable when behavioral training is added to the risk equation.

I agree! Chief risk officers have the opportunity to turn their function into strategic business enablers balancing necessary and desirable risk taking with the need to protect their firms and clients against unexpected and undesirable losses.

Risk management can be a value creator for businesses when it is approached as a strategic activity that is integrated into the organization's decision-making processes. Rather than being seen as a necessary cost, risk management can help businesses to identify and capitalize on opportunities, enhance their reputation and stakeholder relationships, and improve their overall performance. By taking a proactive approach to risk management, businesses can identify potential risks and opportunities early and develop strategies to mitigate risks while capitalizing on opportunities. Effective risk management can also help businesses to optimize their resources, reduce costs, and enhance their competitive advantage.

Absolutely agree! The development of intellectual properties and associated solutions will help the industry to deliver increased value. It is also about connecting the dotes and look at the end to end risk management activities and breaking existing silos enable risk management to reach its full potential.

Collaboration and co-creation can be particularly effective in risk management, it enables organizations to leverage diverse perspectives and expertise to identify and address risks. By involving stakeholders in risk management, businesses can gain valuable insights into potential risks and their impact, as well develop more effective risk management strategies that are tailored to the specific needs and preferences of different stakeholders. Collaboration and co-creation can also help to build trust and strengthen relationships with stakeholders, and can be critical in times of crisis. Additionally, co-creation can foster innovation and the development of new products and services that can help businesses to stay ahead of the competition.