Tips For Managing Enterprise Risk in Remote and Digital Environments
Enterprise risk remains one of the most significant concerns for businesses in the information age. As more businesses start embracing remote work, managing risk in digital environments becomes even more vital. Risk management stems from how the enterprise sees its data. As more companies start investing in business intelligence, the safety of business data rises in value. For companies that need to manage their digital risk models, SAP suggests a few key elements to ensure that risk remains acceptable in digital and remote settings.
Governance, Risk, and Compliance Models
Governance, risk, and compliance, commonly known as GRC, is a core component of managing risk in a digital environment. As defined by the Institute of Internal Auditors (IIA), the three-line model notes three distinct areas organizations should pay attention to when considering GRC compliance. These lines are:
- Operational and support functions dealing with departments such as human resources, finance, and manufacturing
- Risk management and monitoring sectors that provide help to other departments with compliance concerns and risk assessment
- Independent assurance or internal audit
Risk management is a constant race to be ahead of what’s happening. By implementing risk management and assessment across all three lines, a business creates a more holistic approach to its risk management paradigm.
SAP offers an extensive range of information collection and processing tools. Using these tools, a business can collect and examine data that shows up the issues they may have in their risk management systems. To manage risk appropriately, one must first ascertain what it impacts. SAP’s dashboards offer feedback in real-time, offering a unique insight into how the business operates fundamentally. Feedback is essential in monitoring real-time risk impacts on the business’s processes.
Strategy and decision-making are the most vital parts of ensuring a business prospers. Yet, in the past, it was challenging to make decisions with limited information. Companies were often expected to take a position with less than half the information presented to them. Today, thanks to SAP’s risk-aware systems, management can similarly be aware of risks impacting the enterprise. Their decision-making processes would be far more viable with deeper insights thanks to their awareness of the dangers of any particular decision. In this sense, real-time information also plays a part, giving updated risk reports for courses of action. Elements crucial to a company’s operation like its business energy bill could factor into decisions immediately.
While it’s tempting to think of SAP systems and GRC systems as separate entities, they could be combined. With the right management paradigm in place, a business could stand to integrate its GRC with its SAP system. Automation makes things much more manageable and ingrains compliance within the company’s departments. Adding independent assurance of risk and external risk assessment into the business’s existing GRC paradigm will help it remain compliant. Over time these audits will also highlight areas the company can improve, allowing its SAP and GRC integration to be more dynamic.