If you have effective IT risk governance, you can be more transparent with your stakeholders. For that, you need to understand the ‘sweet spot’. It is just like finding the area on a baseball bat that gives the maximum thrust to that incoming ball on impact. In this article at Isaca.org, Tony Martin-Vegue shares how you can find the balance in your IT risk governance.
Balancing IT Risk Governance
To fine-tune IT risk governance, risk professionals must maintain a balance between risk seeking and risk avoidance. If you lean heavily on either, there is a risk of business failure or falling behind trends and industry prospects. Furthermore, you do not want to be pouring all your energy into updating the risk register. You want your activities to help align with corporate objectives.
What Is Risk Seeking?
You cannot move the business ahead or be among the market leaders if you are not proactively taking risks. Organizations take risks all the time. If you are not trying out emerging technologies like automation, your clients will move their portfolios to companies with faster services. You pose more risks by not taking risks. IT risk governance helps you understand organizational risk appetite, and you can take up some chances and turn them into long-standing service offerings.
What Is Risk Avoidance?
Are you good at detecting and addressing risks for your organization? Any risk professional should have these traits. The catch is that these in-built behaviors can stop you from taking up new opportunities. However, you want to reduce as many risks as possible regarding corporate security and technological issues. For long-term success, you must analyze which you should mitigate instead of delaying the response.
As part of the IT risk governance team, you should provide insights that leaders can follow for business continuity. Find out their risk tolerance level. Every stakeholder will have a different viewpoint. It is your onus to discover the ‘sweet spot’ between risk-seeking and risk avoidance behaviors. Increase the risk governance visibility for effective IT governance.
To view the original article in full, visit the following link: https://www.isaca.org/resources/news-and-trends/industry-news/2021/the-sweet-spot-of-risk-governance