A business risk manager is a person who oversees business risks and maintains a business-wide perspective on strategic business decisions. This includes balancing the need for innovation with the responsibility to ensure continuity of operations, as well as maintaining security and regulatory compliance.
It can be difficult to have all these things in mind at once, which is where this article comes into play. In today’s post, we will discuss 3 simple things that business risk managers should know!
The first simple thing they should know is business continuity management. This is where business risk managers will define business continuity plans, which can also include business impact analysis and business recovery strategies.
The next thing that business risk managers should know about is cyber security. Cyber security includes a wide range of activities designed to protect an organization’s information systems from theft or damage as well as disruption of services caused by the unauthorized access or actions of people inside or outside those organizations
Lastly, business risk managers need to be familiar with good governance practices such as corporate social responsibility (CSR) guidelines and anti-corruption measures in order to assess enterprise risks properly. By following these three simple things you can ensure your company doesn’t have any major crisis!
What is business risk?
Business risk is an event that could potentially have a significant impact on the business or its objectives. Examples of business risks are natural disasters, accidents in the workplace, poor worker performance, financial loss due to theft and fraud, supply chain disruption, and lack of financing.
The business risk manager role has existed for decades but never before have companies been so concerned about mitigating these types of events. For example, there was once a time when it wasn’t particularly commonplace for businesses to invest heavily in cyber security activities even though data breaches were becoming more prevalent all around us.
Nowadays you will find almost every large company with at least one person dedicated to this area alone! This means that business leaders need people who understand how best to manage these kinds of business risks.
A business risk manager is not a job title that you will find in every business but it’s becoming more commonplace as organizations are now realizing the need to have someone at the board level who understands these issues and can ensure they are proactively managed.
The role of business risk manager has an important responsibility for mitigating business, financial, operations, or reputational events which may threaten either revenue or reputation.
This means that there is no shortage of things to keep them occupied during their working hours! As well as overseeing the implementation of strategies around cybersecurity, compliance with legislation such as SOX Sarbanes-Oxley, GDPR, etc., managing third-party relationships (e.g.. outsourcing partners) ensuring appropriate insurance coverage exists against business risk, and managing business continuity plans.
The business risk manager is responsible for providing guidance on the range of risks facing a business, how they should be managed (e.g.. mitigation or acceptance), and reporting to senior management on progress made in mitigating these risks.
We hope this information was helpful.
