The EY Signature, has observed how companies have done everything to manage to evolve with globalization and stay afloat. However, there have been so many changes to implement in such a short time, that it can become overwhelming and difficult to keep up with digitization.
EY has seen how this disruptive business transformation has brought with it a DNA new, a revolutionized culture and a new way of thinking and behaving, which impacts the core of any business and concludes that as transformations in business models advance, new risk styles open up for organizations.
During the last two years, for example, the number of cyber attacks has increased considerably, the use of emerging technologies and new business models has exposed companies to compliance with new regulations and has put in check the areas in charge of managing them. risks.
“Organizations are not created to manage risk, they are created to create value as part of a larger aspirational goal and, as a result, they need to focus on risks that directly affect their business purpose and strategy. In these past two years, many have failed to keep up with the changing pace of business, leaving a significant risk coverage gap or becoming an obstacle to business innovation,” said Javier Villalobos, EY Associate Partner for Dominican Republic.
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To face this situation, a dynamic approach is necessary that integrates risk management in the first line of defense of organizations. Where to start? These are some of the recommendations identified by EY:
– Cloud risk management: following a distributed model from front to back and that includes risk identification, processes, education and reports.
– Real time monitoring: An essential aspect is the continuous and consolidated surveillance is an essential aspect to identify, with the use of analysis techniques, the known and emerging risks for the organization.
– Risk management by design: it is about integrating risk throughout the development of a product or service.
– Risk Analytics: Integrated data across risk bands, linked taxonomy, and a foundation for next-generation tools.
According to the specialist, the streamlining of operations and the widespread use of technology will allow risk management to better respond to a constantly evolving business environment.
What must the future of risk management solve? For EY, there are four key ambitions that the risk management of the future must achieve:
1. Enable the business to digitally transform, including developing new products with built-in controls and adopting agile methodologies.
2. Digitize risk management itself, leveraging real-time monitoring platforms and capabilities.
3. Govern for emerging risks, such as those that come with growing technologies like cloud, application programming interface (API), blockchain, and Artificial Intelligence.
4. Implement the physical transformation, through the rethinking of the responsibilities under the three lines of defense and the coherent decision-making bodies.
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For a more effective and efficient execution it is essential that it evolves with the transformation of the business in its thinking, approach and support capacity. The risk management practice is not a duty that falls solely on one person or one department, it is a process that must be present from beginning to end, it is a shared responsibility. It is an opportunity for companies to be able to evolve in the digitalization of their company in a successful and fluid way in an integrated way.
About EY
EY is a global firm of 300,000 professionals, a leader in consulting, auditing, tax, transaction and legal services. In Central America, Panama Y Dominican Republic operates as a single integrated organization, with a multi-disciplinary and multi-cultural team, made up of more than 1,400 collaborators and 50 Partners, committed to building a better business world for its people, clients and communities. EY assists its clients in the processes of expanding, reorganizing, improving and managing their businesses.
