Risk & Resilience Approach

Improve your Organisation’s Decision Making and Response Mechanism through an Integrated Risk & Resilience Approach

Vinod Menon
Vinod Menon
Chief Product Officer
Vinod Menon
Vinod Menon
Chief Product Officer

During last twelve to twenty four months we have all experienced extraordinary uncertainty primarily due to natural calamity, COVID-19 pandemic, unstable global economy,  political differences leading to war scenario and others. We have even witnessed that large well run fortune 500 companies have failed the test during this period despite having a good risk and governance framework.

Organisations with a fragmented risk and resilience framework lack visibility to have a consistent program across functions and departments and are not in a position to leverage risk and resilience insights to improve planning and decision making.

Risk Management is all about identification, assessing, evaluate, and measure risks followed by monitor, mitigate, and minimize those risks. 

The Basel Committee defines operational resilience as “the ability to deliver critical operations through disruption.” The principles of operational resilience aim to strengthen banks’ ability to withstand operational risk-related events that could cause significant operational failures or wide-scale disruptions in financial markets, such as pandemics, cyber incidents, technology failures or natural disasters. 

Step 1 – Identify Critical Business Services

Step 2 – Resource Mapping and Dependency

Step 3 – Set Impact Tolerance

Step 4 – Measure and Monitor the Tolerance Level

Step 5 – Scenario Testing

Step 6 – Continuous Improvement

Benefits of an integrated Risk and Resilience framework

Benefit

Risk

Resilience

Enhanced reputation 

Decision makers who are sufficiently risk aware understand the potential threats and opportunities that will emanate from their decisions and always will try to take a calculated risk which will work towards their advantage with well thought out mitigation plan.

By reliably remaining online and continuously delivering services to clients during disruptions, resilient organisations maintain and enhance their reputation.

Receptiveness to change

Allocating adequately skilled resources to the high-risk corporate initiatives is essential to the overall sustainability of the business.

In a world of accelerated change, a resilient organisation is in a better position to accommodate the speed at which organi­sations can respond to change as it is vital and can drive competitive advantage and sustained relevance.

Better trust and stakeholder confidence

Taking strategy decisions that are in line with the Board’s risk appetite is essential to ensuring that management is acting in line with the stakeholders’ expectations.

Resilience drives effective engagement and communication with stakeholders, reliability and consistency, which ultimately builds trust.

Informed and future-fit strategic initiatives

An organisation’s risk appetite provides direction and a good basis for selecting strategies and strategic initiatives.

An organisation’s resilience posture may increase or decrease the risk of new strategies being implemented.

Efficient operations

Where risks are regularly defined and updated at the strategic level, it helps increase awareness around emerging risks and, in the process of risk treatments, reduces strategic and operational surprises.

More efficient operations through value chain analysis, elimination of inefficiencies and continuous enhancement driven by operational resilience.

More agility and flexibility

Creating alternative futures, systems thinking and key risk indicators allows for reliable and fast decision making.

A resilient organisation is better prepared to respond swiftly and effectively to emerging trends, needs and stakeholder expectations.

Reduced cost and impact associated with incidents and sudden disrup­tions

Risk reporting reflecting integrated and aggregated risk information (top-down and bottom-up), linked to risk owners and control owners as well as risk response strategies allow for a clear understanding of all stakeholders and strategies that are impacted by a particular risk across the company’s risk profile.

Resilience principles drive organisations to find and maximise synergies in the microenvironment and external business ecosystem, providing benefits to the entire ecosystem

(Source guideline on integrating strategy, Risk and Resilience 2022 edition – The institute of risk management South Africa)

The integrated risk and resilience approach is where most organizations will find the greatest balance in collaborative risk and resiliency management and oversight.

Discover more about gieom Risk & Resilience solution. Request a demo now.

Recent Blog’s

Share

Explore more

Incident Management

How Financial Institutions can benefit from Incident Management Solution?

Financial institutions, such as banks, insurance companies, and investment firms, face various challenges in their daily operations. They have to deal with complex regulations, high …

Risk Management

From Spreadsheets to Success: Advantages of Operational Risk Management Software for Financial Organizations

Many financial organizations still rely on spreadsheets to manage their operational risk data. While spreadsheet is a powerful and versatile tool, it has some limitations …

Operational Resilience

Building Resilience: The Crucial Role of Policy Management Solutions in Compliance with the Digital Operational Resilience Act(DORA)

A policy management solution is of utmost importance from a Digital Operational Resilience Act (DORA) regulation perspective. The DORA regulation aims to ensure the operational …

SOP Digitization Solution
SOP Digitization

How to Choose the Right SOP Digitization Solution?

Standard operating procedures (SOPs) are essential for any business that wants to ensure quality, consistency and compliance in its processes. However, managing SOPs can be …

SOP Digitization
SOP Digitization

Why is it Important for the Financial Institution to Digitize its Standard Operating Procedure?

The financial sector is undergoing a rapid transformation due to the emergence of new technologies, changing customer expectations, and increasing regulatory demands. In this context, …

6 step operational resilience blog
Operational Resilience

6 Simple Steps for Implementing an Operational Resilience Framework

On March 29, 2021, the Bank of England (BoE), Prudential Regulation Authority (PRA), and Financial Conduct Authority (FCA) jointly issued policy and supervisory statements to …

DORA Blog
Operational Resilience

Digital Operational Resilience Act (DORA) – A Brief Overview

The use of information and technology is essential in the modern era as it supports complex systems used for daily activities. It plays a critical …

Operational Resilience

Operational Resilience Program – Steps to Conduct a Failure Modes and Effect Analysis (FMEA)

Basel defines Operational Resilience as a bank`s ability to deliver critical operations even at times of disruption. This would mean that the bank should have …

Impact Tolerance
Operational Resilience

Impact Tolerance – Setting Impact Tolerance is a Vital Step to Build and Enhance Operational Resilience of an Organisation.

Impact Tolerance is quantifying the level of disruption, a critical business service can accommodate or absorb, before such disruption creates a significant impact or harm …

Operational Resilience Programme
Operational Resilience

Operational Resilience Programme – Digitize your BIA (Business Impact Analysis) – An Important Step

Let’s first try and understand what is a BIA? Business Impact Analysis is a methodology which allows to predict the impact of disruption on your …

Operational Resilience Guideline
Operational Resilience

Synopsis of the Operational Resilience guideline of MAS- Monetary Authority of Singapore

Operational disruptions, if not recovered speedily, may compromise the ability of financial institutions (“FIs”) to meet their business obligations, resulting in financial and reputational damage, …

Business Process Model and Notation
BPMN

The What and Why of BPMN – Business Process Model and Notation

The Business Process Model Notation (BPMN) is a graphical representation for specifying business processes in a business process model. The objective of BPMN is to …

strengthening-operational-risk-management blog
Risk Management

Key Highlights of APRA`s Discussion Paper on Strengthening Operational Risk Management

Events of recent years like COVID-19, cyber-attacks, flood and storms etc. has reinforced the importance of managing and responding to operational risks. To ensure that …

Integrated Risk and Resilience Framework blog
Risk Management

An Integrated Risk and Resilience Framework – A Better Approach to Manage Uncertainty

Businesses across the globe have, in the last couple of years, seen exceptional uncertainty due to political tensions, economic turmoil, COVID-19 pandemic and others.   Markets …

Risk Management Process
Risk Management

The Seven Steps to Implementing an Effective Risk Management Process

Risk Management Process is a methodology by which risks are formally identified, measured and treated to ensure that risk is avoided, transferred or mitigated. As …

Simple steps to Automate and Standardise your Risk & Control Self Assessment (RCSA)
Risk Management

Simple steps to Automate and Standardise your Risk & Control Self Assessment (RCSA)

Risk and Control Self Assessment process is a widely accepted methodology used by banks, financial companies, insurance companies and others to identify and assess the …

Key Risk Indicators -A Powerful Tool to Anticipate Your Risk Within the Enterprise
Risk Management

Key Risk Indicators -A Powerful Tool to Anticipate Your Risk Within the Enterprise

In simple terms, Key Risk Indicator (KRI) is a metric used to measure the level of exposure to risk. These are indicators that denote the …

Hongkong’s Regulations for Operational Resilience
Operational Resilience

Hongkong’s Regulations for Operational Resilience

On 22nd December, 2021 HKMA (Hong Kong Monetary Authority) came up with a Supervisory Policy Manual for Operational Resilience to provide Authorized Institutions (AI) with …

Irelands’ Financial Service Sector Guidance on Operational Resilience
Operational Resilience

Irelands’ Financial Service Sector Guidance on Operational Resilience

The Central Bank of Ireland`s objective of this guidance is to communicate to industry how to prepare for, respond to and recover and learn from …

New Operational Resilience Regulation
Operational Resilience

New Operational Resilience Regulation for Financial Institutions in United States (USA)

The Federal Reserve, the Central Bank of the United States in August 2021 has released a paper intended to help community banks assess threats when …

Process Mapping is an important step in building an Operational Resilience Framework
Operational Resilience

Process Mapping is an important step in building an Operational Resilience Framework

The Covid -19 pandemic has clearly shown two trends within firms: The intensified use of technology and Operations can be managed through digital work force …

What is Game-Based Employee Onboarding? Tips and tricks to implement the right gamification strategy
Game-based Learning

What is Game-Based Employee Onboarding? Tips and tricks to implement the right gamification strategy

Learning begins with joining. Effective Onboarding contributes to a newbie commencing with confidence, feeling supported, and acclimatizing much sooner. Conversely, employees who spend weeks and …

Strategies for Improving Banks’ Operating Efficiency
Digital Transformation

Strategies for Improving Banks’ Operating Efficiency

Banks occupy a place of pride because of its structure of undivided attention and contemporary functions. They have come an extended way from merely performing …

Get started with Digital Identity Verification
Digital Identity

Get started with Digital Identity Verification

In a growing interconnected digital economy, identity verification of an individual’s real-world identity against their digital one has become ever critical in fraud detection. The …

Growing Importance of Operational Resilience in the Digital Era
Operational Resilience

Growing Importance of Operational Resilience in the Digital Era

Operational Resilience assumes that things will go wrong, and it will force organizations to plan on how to recover from the disruption. It is a …

Why are organizations jumping onto the AI-enabled Identity verification bandwagon?
Digital Identity

Why are organizations jumping onto the AI-enabled Identity verification bandwagon?

Who has not experienced being asked to show some kind of government ID, be it to receive your courier, or check into a hotel, or …

What is Identity Proofing?
Digital Identity

What is Identity Proofing?

As per the Digital Identity Guidelines published by NIST, a US agency, Identity Proofing is verifying the claimed identity of an applicant by authenticating the …

New Amendment to KYC Regulation by RBI
Digital Identity

New Amendment to KYC Regulation by RBI – 10th May, 2021

In Jan 2020, Reserve Bank of India amended the KYC norms allowing banks and other lending institutions to use Video based Customer Identification Process (VCIP) …

5 Steps to a Successful Execution of a Digital Transformation Project
Digital Transformation

5 Steps to a Successful Execution of a Digital Transformation Project

Digital Transformation is bringing about a radical shift in the way you run your business, deliver services or manage your customers. The objective of digital …