The 2009 release of ISO 31000 was the first step across the threshold into 21st century risk management. Unfortunately the industry that has developed around it has firmly grabbed the doorway and won’t let go. Although the latest revisions make references to decision making and integration into functional purpose, it totally misses the point of risk management, which is to assist navigating a complex world.
Enterprise Compliance Today
In my 2013 book "Mastering 21st Century Enterprise Risk Management" I quipped “just as the Wild West of the 1890's had disappeared without trace by the Roaring 1920s, so too will the business world of the 1990s, be long forgotten by the 2020s”. Just 5 years on and not only has the world changed emphatically but the rate of change is accelerating.
Senior management have to come to grips with the fact that Digital Transformation is not an Event but rather the operating environment of 21st century business.
Last week saw the latest in misguided innovation talkfests, the AFR Innovation Summit #Innovation16. For several days academics, public servants, journalists, and corporate employees put forward their insights into how Australia can develop an Innovation culture.
Return of Investment (ROI) does not come for automating a process but from using it to add value. Value adding comes from targeting time and resources, risk based thinking, and Business Intelligence where they can deliver the greatest benefit to achieving the organisation’s strategic goals.