Although they are new and often not well understood, emerging risks can be identified, evaluated and response plans can be implemented to create a competitive advantage for the organization, according to RIMS new executive report titled, “Identifying and Evaluating Emerging Risks.”
The report explores emerging risk research and discovery processes, evaluation strategies, response planning, steps to integrate emerging risks into the known risk portfolio, as well as helpful tips to address and overcome expected challenges to enhancing capabilities.
The report is authored by the following members of RIMS Strategic and Enterprise Risk Management Council: Frank Fiorille, vice president of risk management, compliance and data analytics, Paychex; Lorie Graham, chief risk officer and senior manager, insurance services, American Agricultural Insurance Co.; and Christy Kaufman, risk analytics and insights director, and chief compliance officer, AmFam Ventures.
Key takeaways:
- By focusing on trends that are just beginning to surface, organizations can identify potential shifts in strategy ahead of competitors;
- Understanding plausibility of emerging risks will help the organization determine which risks are most deserving of their limited resources;
- Changes to the organization’s strategy can create new blind spots;
- The tone in which a risk professional delivers information about an emerging risk to leadership matters;
- While one person might be responsible for strengthening emerging risk capabilities, that person must form a cross-functional team to develop the response plan.
The report is currently available exclusively to RIMS members. To download the report, visit RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge. For more information about the Society and to learn about other RIMS publications, educational opportunities, conferences and resources, visit www.RIMS.org.