Essential Insights in Risk Management – New RiskTech Journal Articles for August 2024
John A. Wheeler
Founder and CEO @ Wheelhouse Advisors | Risk Management & Cybersecurity Expert | Former Gartner Research Leader
Dear RTJ Readers,
We are delighted to present the latest insights and developments in risk management, featured in the newest articles from RiskTech Journal. Our recent publications address pivotal topics shaping the current risk landscape, offering valuable perspectives and strategies for professionals in the field.
Challenges in Enterprise Risk Management (ERM):?A recent report highlights the critical issue of ERM being siloed from other risk disciplines, with only a fraction of organizations reporting comprehensive ERM processes. Understanding the barriers and integrating ERM more effectively is crucial for addressing the growing complexity of corporate risks.
Strengthening Digital Risk Management:?The recent CrowdStrike software bug incident, leading to significant insured losses, underscores organizations' need to go beyond traditional cyber insurance. Investing in proactive, integrated risk management (IRM) frameworks is essential for addressing the escalating nature of digital risk events and enhancing overall resilience.
Enhancing Banking Resilience:?Insights from the Bank for International Settlements (BIS) emphasize the importance of comprehensive risk management in the banking sector. Reflecting on past banking turmoil, it becomes evident that inadequate governance and weak risk oversight can lead to significant institutional failures. Adopting IRM technologies can bolster banking resilience and regulatory compliance.
AI in Corporate Governance:?As AI continues to permeate boardrooms, it raises significant questions about governance, oversight, and risk management. The concept of AI-driven insights in decision-making processes presents both opportunities and challenges, necessitating a balanced approach to innovation and risk.
·?????? Integrated Risk Management (IRM) Benefits:?Adopting an IRM approach strengthens cyber defenses and has tangible benefits, such as reducing cyber insurance premiums. Additionally, shifting from a security-based mindset to an integrated disclosure and internal controls approach is vital for comprehensive risk management in today's interconnected business environment.
For a deeper dive into these topics, I encourage you to read the full articles linked below:
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8/1/24
A recent report by the Association of International Certified Professional Accountants (AICPA) and North Carolina State University's ERM Initiative highlights a critical challenge in enterprise risk management (ERM): its isolation from other risk disciplines. Despite the growing complexity and volume of corporate risks, only 37% of organizations report having complete ERM processes, with 30% rating their risk management "mature" or "robust."
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7/30/24
The recent outage caused by a software bug in CrowdStrike's quality-control system has underscored the escalating nature of digital risk events. The disruption, which affected sectors ranging from aviation to banking, has led to insured losses estimated between $400 million and $1.5 billion, according to cyber analytics firm CyberCube. This incident may be the largest single cyber insurance loss to date. Companies must move beyond traditional reactive measures and invest in proactive, integrated risk management (IRM) frameworks encompassing a comprehensive view of potential threats.
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7/23/24
In his speech titled "An Integrated Approach to a Safer and More Resilient Banking System," delivered on July 19, 2024, at the Central Reserve Bank of Peru's 15th Annual Conference in Cusco, Agustín Carstens, General Manager of the Bank for International Settlements (BIS), highlighted the importance of comprehensive risk management in the banking sector. Reflecting on the banking turmoil of March 2023, he underscored how the failures of institutions like Credit Suisse and Silicon Valley Bank (SVB) stemmed from inadequate governance, weak risk oversight, and poor regulatory compliance.
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领英推荐
7/19/24
The recent CrowdStrike update incident serves as a wake-up call for organizations worldwide. Our digital landscape is inherently fragile, and the consequences of a single misstep can be far-reaching and severe. By adopting an Integrated Risk Management approach, organizations can better navigate the complexities of today's digital environment, ensuring resilience and continuity in the face of unexpected disruptions.
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7/18/24
As artificial intelligence (AI) steadily integrates into corporate governance, boardrooms are witnessing a transformative shift. The concept of a 'robo-director,' where AI provides insights alongside human board members, is becoming a reality. This emerging trend raises significant questions about governance, oversight, and risk management. Wheelhouse Advisors' IRM Navigator? can be pivotal in navigating these uncharted waters, ensuring that AI is leveraged effectively while mitigating associated risks.
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7/16/24
In today's digitally-driven business environment, the threat of cyber-attacks has escalated to unprecedented levels, necessitating robust cyber defenses to secure competitive cyber insurance premiums. This article delves into how Integrated Risk Management (IRM) can be pivotal in reducing cyber insurance premiums, enhancing overall risk resilience, and positioning businesses for sustainable success.
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7/11/24
In today's interconnected and complex business environment, organizations must shift away from a security-based mindset that focuses narrowly on immediate threats. Instead, they must adopt an integrated risk management (IRM) approach that balances tactical and strategic risk perspectives. Lessons learned from the SolarWinds cyberattack are a stark reminder of this necessity.
Stay informed and ahead of the curve with these essential insights. Your engagement and feedback are highly appreciated, so feel free to share your thoughts and comments.
Best regards,
RiskTech Journal Team at Wheelhouse Advisors
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