Dynamic risk assessment is a proactive method of risk management. In the ever-changing and disruptive business environment traditional risk assessment models which are mostly based on the impact and the likelihood. fail to recognize the interconnection among the risks and more effective risk mitigation actions. DRA enables organizations to have a deep understanding of the risk impact in different spectrums of the organizations. subsequently, design more effective and efficient risk mitigating methods.
Dynamic Risk Assessment is an enhanced method that applies algorithms and data analytics to identify, manage and mitigate organizational risks. Dynamic Risk Assessment based on the insights from the management team to identify the risks and opportunities. Understanding the organization’s risk interrelationships can be significantly improved if we find a way to identify potential risk infirmity. The new insights revealed can, in turn, enhance risk management and risk oversight. Management and Boards should often ask the following questions to have a deep understanding:
How do the operational risks are interrelated and their impact on different functional units of the organization?
Do we have a complete understanding of the risk profile or are there any emerging risks that are not being addressed?
If any risk event occurs then how adverse would be its effect?
How to go beyond risk resilience and create opportunity and competitive advantage out of the risk?
Are the resources being utilized efficiently and effectively to achieve risk outcome equivalent to the risk appetite?
Dynamic Risk Assessment is the key with which the Board’s can have a deeper insight into their risk assessment practices so as to effectively and efficiently manage and mitigate risks. With applied science and insights from the management team and extensive benchmarking the DRA model allows having an insight into the occurrence of the risk from risk contagion. These insights provide the board to drive more informed decision making within the organization and how to monitor and manage these threats and create opportunity.
Implementation of Risk and Compliance automation tools like ConfidentG Cyber Risk Governance product suite is an all-inclusive solution to the challenge of continuously changing Compliance and Risk trends. The Agility, Mobility, Security, and Scalability that such cloud-based solutions provider is unmatched and improves overall productivity and efficiency of important Business processes like Risk, Compliance, Audit, and Cyber Governance.
Stay tuned for more informative posts on Cyber, Risk and Compliance Governance. Visit us at our Appexchange listing today at https://cglabs.us/cg_products and get confident with your Governance initiatives.