Understanding Risk Management Trends in 2022
By Paula Quiroz
From the long term effects of a global pandemic to the Great Resignation, understanding the risk management trends we’re facing in 2022 is immensely important for every business and industry.
In this blog we assess how risk managers have the opportunity to provide great value to the businesses they serve by staying up to date with risk management trends and mitigating the risks being faced today.
What is Risk Management?
Risk management is the process of identifying, assessing, and controlling threats to an organization’s earnings. Risk may result from financial instability, legal troubles, technology problems, management errors, or natural disasters.
Traditionally, risks have typically been the job of the leaders in charge of the department where the risk comes up. For instance, a Chief Technology Officer is responsible for IT risks, a Chief Financial Officer is responsible for any risks relating to finance.
What is Enterprise Risk Management (ERM)?
In enterprise risk management, managing risk is a collaborative effort
ERM focuses on anticipating risk across an organization. It is key for risk managers to manage positive risks–opportunities that could increase business value or, conversely, damage an organization if not taken. The goal of any risk manager is not to eliminate all risk but to preserve and add to enterprise value by making smart risk decisions.
Why is Risk Management Important?
Risk management should be key priority for business leaders because the risks that modern organizations face today have grown more complex.
4 Risk Management Trends in 2022:
With the growth of the digital workspace and increased use of technology, cyber security has become a huge risk that companies should be mitigating. Organizations need to securely communicate and gain access to the information and resources they need, when they need it.
Companies should reflect on the lessons learned throughout the global pandemic and its lasting long term effects. Leaders should be considering how their companies can apply what we’ve learned to their advantage. For instance, we have learned to adapt to new technologies and processes making remote and hybrid work possible even long after COVID-19 restrictions have eased.
- The Great Resignation left organizations struggling to find sufficient workers to fill all their job openings. With many employees leaving their jobs, business leaders have had to plan how to retain current employee talent and capture operational knowledge before it leaves with exiting employees through the door should be a priority.
The increase in floods, fires, earthquakes, hurricanes, and droughts causing business interruptions have forced organizations to need to plan ahead for these types of risks.
Aragon Research helps businesses across all industries draft risk management strategies that support their specific needs.