1. Building Risk Agility Improving organizational risk agility requires
changes to risk
identification,
assessment, and response behaviors.
Three Steps to Risk Agility
Organizations Should Incorporate Agility into All Aspects of the Risk Management Process
Timeline of a Risk Event
Risk Identification
Risk Assessment
Resource Mobilization
Traditional identification is a largely static and calendar-driven process, reliant on lagging indicators and the knowledge of a few individuals.
Traditional risk assessments, which focus on impact and likelihood, fail to take into account the velocity of risk and may be outpaced by swiftly emerging risks.
Traditional resource allocation is calendar-driven, thus budgets and resource allocation decisions quickly become obsolete in the face of a changing business environment.
Early Risk Detection
Use forward-looking risk indicators and prediction markets to swiftly identify emerging risks.
Risk Velocity Sensing
Consider the speed at which risks will impact the organization when prioritizing and escalating risks.
Rapid Resource Mobilization
Use scenario planning to ensure budgets and resource allocation decisions stay relevant to a changing environment.