Essay Sample on Creating a Risk-Smart Organization: Leveraging Risk Professionals

Introduction

Risks management is one of the emerging issues across many businesses, which brings an aspect of its automation. This is being done through the action of bringing groups of risks professionals together with the attempt of leveraging their experiences and skills. In addition to that, it ensures that risks are not overlooked and that opportunities are recognized and acted upon. This is because having that culture of smart - risking is the critical aspects of the success of an organization. To facilitate this key to success, there is also a need for the establishment of common risk language to promote dialogue and information to be shared about the risks. This universal language of sharing the risks, strategies are needed to come up with a defensive model which acts as a shock absorber or comfort of risk identification and response provided in a very timely manner. To achieve effective risk management through technology, some factors such as evaluation of projects sourcing, current trends and innovations and essentials of change need to be detailed discussed.

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Evaluation of Projects Sourcing

One of the aspects of obtaining effective risk management is through having excellent leadership. Having exceptional command means that the company is always updated on strategies of dealing with risks (Nelson & Madnick, 2017). As it is commonly known, many companies have projects which needs to be insured by the insurance company, and as a good leader some of the strategies which needs to be practiced while sourcing these projects include

Having responsible licensing - This is must be linked with technology for easy monitoring of whether the project is legal. This is because a situation can arise whereby the main project can be carried with other subsequent schemes which are not licensed. In this scenario, fraud is detected since each project is supposed to be insured separately for ease of determining premiums.

Easy commit process - This aspect concerns with coming up with a well-defined process and transparency of making contributions. Having this accessible platform helps in creating trust, and external investors feel that their money towards cover insurance of the project is protected (Nelson & Madnick, 2017). This is one sign of good leadership, and it should be incorporated for regular contributions.

Having aspect of Participative Community - This is the situation whereby views of contributors are considered about how the system used to record contribution works (Nelson & Madnick, 2017). This feedback helps in improving the operations may be in term of how effective the system is in terms of time-saving time. Having a participative community in every business is a very crucial factor since the adjustments are made accordingly for the overall betterment of the organization.

Open governance - This is a situation whereby evaluation of the governance model is done to determine its openness and transparency. If the review finds that the model is not transparent, then technology is improved to bring the project in open governance, which will benefit the organization and stakeholders.

Current Trends and Innovations

Human interfacing - One of the aspects which have enabled excellent connection across the globe is through human interfacing that comes from the rising of smartphones. It has already discovered that at least 80.0% of computer usage is through mobile devices (Colucci-Gray, 2016). The key here is that most people use smartphones to access systems through highly advanced technology. This human interfacing also acts as a channel for improving leadership on risk management. This is because it acts as a platform of exchange of views and ideas on how to tackle risk management concern.

Internet of things (IoT) - It is a fact that the world is moving into the second generation of IoT whereby organizations are coming up with devices that are highly effective when giving a response. This technology has already matured within the domestic market, and it has reliable networks as well as improved security (Colucci-Gray, 2016). It is one of the critical technology which is used by the administration of various managing directors of projects. This technology is beneficial when sharing ideas on how to manage risks through effective leadership.

Rise of intelligent decision making - This is a situation whereby a decision is made from already discussed opinions that are presented through human interfacing (Nambisan et al., 2017). Since there are a lot of the views presented by many individuals discussion on how to select appropriate one is done online, and the point of consensus is reached. The term intelligent is derived from the aspect that decision is passed online whereby there is the use of already highly advanced technology.

Essentials of Innovation

As a manager who wants to give the best in terms of risk management, there are various essentials which need to be considered. These essentials include

Aspire - This is done through acknowledging that growth of an institution is very critical. This helps in coming up with cascaded targets, which genuinely shows that the manager is inspired to innovate ways of managing risk.

Choose - This is a situation whereby a manager has to choose to invest in a coherent, as well as a risk-balanced portfolio. In selecting this portfolio, the manager needs to evaluate whether there are enough resources of carrying out an initiative. In this case, the action is risk management through the use of technology as a resource.

Discover - Innovation needs actionable and distinguished intuitions. These insights should excite consumers and also bring new classifications and markets to be. The point of concern is how the company will develop it. It should be done in a genius, and appealing approach and the results should be outstanding. For this process to be complete, it must undergo three systematic areas which include having a costly problem to solve, incorporating technology which will enhance in solving the problem identified (De Jong et al., 2015). The last step is coming up with a business model which will generate money. Every company which wants to succeed in any of the projects has to collide all three levels. However, it needs to put more focus on the type of technology to be incorporated towards making that initiative successful.

Evolve - This involves the creation of business models which must come up with some scalable profits. Risk management is a business model which requires a strategy for it to be effective. First of all, it requires good leadership, which is integrated with progressive updated technology (De Jong et al., 2015). This technology must connect the leadership of the organization with its clients. This connection through technology creates a mutual bond between the organization, clients, and external stakeholders, which makes sure that certain of the project is guaranteed.

Accelerate - Acceleration comes with the way competition is being carried by other organization carrying the same activities. Here the manager needs to develop and launch innovations which are effective quickly. This will help in beating other competitors, which offers a guarantee of a healthier project (Evans et al., 2017). It is the responsibility of leaders to know how to come up with excellent ideas, followed by effective technology to achieve the required initiative. For risk management, leaders should make sure that the kind of technology used accelerates achieving the goal of effective risk management.

Scale - This aspect involves launching innovations at the right level within the relevant market and segments. To achieve this, appropriate research needs to be done on which kind of technology to apply and the extent at which that technology will serve. In risk management, the scale or segment to be covered is determined by the size of the project to be undertaken.

Extend - This aspect concerns with creating and capitalization on external networks. It should be in line with the objectives of an initiative undertaken and which technology to be used. For the external system to be developed a high level of technology and devices must be incorporated.

Mobilize - This is the last aspect of the essentials of innovation, which assesses whether people are motivated by that innovation (De Jong et al., 2015). First of all, the performance of the technology in carrying out that initiative should be a motivational factor. This is a reason why necessity arises of making sure that technology in use is highly efficiently. If it is useful, people will be highly motivated to use it, and they will mobilize others to use it.

Conclusion

Risk management is one of the current issues that need to be addressed with a lot of professionality. First of all, the leadership of such a company needs to be updated now and then, which means effective technology must be installed. Coming up with a practical and transparent system is one of the ways of incorporating all relevant stakeholders starting from leaders, staffs, clients, and external investors. This is because it is through this system that ideas are exchanged on how improving tasks of risk management. If the company gains trust from members of the public on the way they carry activity of risk management, they make profits, which is an objective of every organization.

References

Colucci-Gray, L. (2016). BERA Research Commission.

De Jong, M., Marston, N., & Roth, E. (2015). The eight essentials of innovation. McKinsey Quarterly, 2, 1-12.

Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow, C. Y. (2017). Business model innovation for sustainability: Towards a unified perspective for the creation of sustainable business models. Business Strategy and the Environment, 26(5), 597-608.

Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation Management: Reinventing innovation management research in the digital world. Mis Quarterly, 41(1).

Nelson, N., & Madnick, S. (2017). Studying the tension between digital innovation and cybersecurity. Association for Information Systems.