Enterprise risk management consulting has seen a significant rise in popularity in recent years thanks to factors such as an increase in cybersecurity threats and the COVID-19 pandemic. That latter made many realize the true fragility of their company’s risk landscape, prompting business leaders to take action to manage and mitigate risk.
To say that enterprise risk management is complex and multifaceted is an understatement, especially when you consider how these risks increase exponentially as an organization grows and scales to become a large enterprise. This is where an experienced consulting firm, specializing in the area of enterprise-level risk management, can assist by offering an evaluation and developing an action plan for companies that are ready to tackle existing risks, monitor for new risks, and eliminate risks in the future.
There are numerous benefits of enterprise risk management consulting. Let’s look at a few of those advantages and how they can benefit your enterprise organization.
Enterprise Risk Management Consultants Know What to Look For
Even the most seasoned enterprise business leader may have blind spots when it comes to their organization’s vulnerabilities and threats, making it difficult — if not impossible — to thoroughly identify existing and prospective risk factors. As you can imagine, this holds the potential to impede risk management efforts. If you are lacking complete insights into the risks that you are confronting now or in the future, you risk a scenario where you are blindsided by highly impactful risk factors
A consultant, on the other hand, will have great insights into an organization’s vulnerabilities and risk factors, including those that may not be overly apparent or those that are simply prospective — albeit likely — to affect the company in the future. This positions your organization to actively address risk factors in your enterprise risk management strategy, thereby avoiding losses and other consequences.
Enterprise Risk Management Consulting Allow You to Minimize or Avoid Serious Losses
Avoiding losses that arise from vulnerabilities and risk factors may seem like an obvious benefit, but it is worth mentioning because the advantages are tremendous.
A single cybersecurity breach that affects customer data, for example, can affect a large enterprise in many ways and the financial losses are just the beginning of the story. In addition to the tremendous financial consequences, a business is likely to see major damage to their brand image and customer/client trust level. These are losses that are very difficult to recover and even the best public relations team may be unable to fully restore a company’s public image and customer/client trust level to a pre-cybersecurity breach level.
Losses can also involve fines and penalties arising from regulatory compliance issues. A regulatory risk management consultant with experience in your organization’s industry or field will have some great insights into which laws and regulations may pose a problem in terms of non-compliance.
The ability to identify issues in this area and avoid regulatory non-compliance fines and penalties can be extremely beneficial. Larger high-profile companies are far more likely to receive bad press in the event of a regulatory violation. A risk management consultant can work with an organization to address existing or prospective compliance problems, offering a major benefit. The result: not only will a company avoid financial losses due to non-compliance but they will also avoid a hit to their public image and brand identity.
Greater Confidence from Working With an Enterprise Risk Management Consulting Firm
Enterprise business strategies are highly complex and comprehensive. A solid strategy is essential for success, particularly at the “big business” enterprise level. But a miscalculation or unexpected event — such as a risk factor gone rogue — can render an enterprise business strategy ineffective. That is a major problem, especially when you consider how much time, effort, and resources are invested in the development of a business strategy.
Greater confidence is a big benefit of working with an enterprise management consulting company since you can proceed knowing that current and potential risk factors have been addressed and mitigated. An experienced consultant will also have the ability to help you establish risk monitoring. Monitoring for future risk factors will offer a tremendous benefit because it positions an organization to act quickly when a problem is detected. When you act quickly and early in the game, this greatly minimizes the adverse impact on an organization. That translates into reduced loss — financial or otherwise.
An Enterprise Consultant Can Help Implement and Deploy Risk Management Software
Risk management software systems offer many benefits to a company, especially at the enterprise level where you have numerous threats and vulnerabilities combined with countless organizational and operational complexities. As such, a risk management software system offers a great toolset for identifying threats and risk factors, developing an action plan, monitoring the progress of that risk mitigation plan, and monitoring for future threats and vulnerabilities.
Unfortunately, there are literally dozens of options, ranging from generalized risk management platforms to highly-specialized systems that are custom-tailored to suit certain risk types and industries. Subsequently, finding the best risk management software platform can be extremely challenging. An experienced enterprise consultant can typically recommend the best risk management software platform for a company’s unique needs. Additionally, your enterprise risk management consulting firm may be able to recommend someone who can assist with implementation and deployment since these platforms are rarely of the “plug and play” variety. Risk management software systems tend to be rather sophisticated and require a bit of configuration before they are deployed. But once up and running, a well-configured platform will bring major benefits to a business.
The right technology can have a very positive impact, whether it’s a small up-and-coming startup venture or a massively successful global enterprise. At iTech, we specialize in risk management technology, such as software platforms designed to help companies to manage their risk mitigation and monitoring efforts (among other things.) Reach out to the team at iTech today to discuss your company’s risk management situation and we’ll begin collaborating on the development of technology that will enhance and align with your proactive enterprise risk management strategy.