With the recent market turmoil, the question has been raised: “Are traditional risk mitigation systems inadequate in times of crisis?”
Here are some steps organizations should consider to address risk management:
1. Push analytics to the limit. How you measure risk impacts how you address it.
2. Be strategic. Drive a comprehensive data strategy.
3. Examine your business processes. Change them if necessary.
4. Put better information and tools in the hands of deal makers. Empower CEOs with information on the risk environment.
5. Pursue capital arbitrage and compliance opportunities.
6. Jump start the incentive structure. Mobilize your workforce and address the human factor.
7. Implement a comprehensive, integrated performance and risk management framework.