Gaurav Kapoor, co-CEO and cofounder of MetricStream, emphasizes the importance of proactive risk management in the governance, risk, and compliance (GRC) industry. Understanding trends and preparing for future challenges are key aspects of effective risk management.
In 2023, a variety of interconnected risks were unveiled, highlighting the need for a holistic approach to risk management. Businesses are increasingly focusing on third-party risks and adopting a network-based view of risks to gain strategic advantages.
Technology, particularly AI, is set to play a significant role in unifying organizational risk management. While concerns exist around AI adoption in GRC due to issues like job displacement and bias, its benefits in compliance, risk detection, and decision-making are undeniable.
Organizations are shifting towards a proactive risk management approach that prioritizes preparedness and prediction over defense alone. Continuous monitoring, compliance resilience strategies, and integration of technology are key components of this evolving risk management landscape.
Regulatory requirements such as the Digital Operational Resilience Act (DORA) and SEC’s cybersecurity rules are pushing organizations towards more accountable and transparent risk strategies.
Investments in cybersecurity and risk management are expected to rise in 2024, with a focus on technologies that enhance cyber risk management, including AI-powered solutions.
Internal personnel remain a significant factor in data breaches, emphasizing the need for increased awareness and training at all levels of the organization. Building a culture of risk awareness and engaging the frontline employees are crucial for effective risk management.
In conclusion, organizations need to view risk management as an active and continuous component of their operations to navigate the evolving GRC landscape successfully in 2024 and beyond.
