An organization’s survival depends on its ability to identify early indicators of risk and then take measures to eliminate those risks before they disrupt operations. Neglecting even small details can lead to significant resource and reputational losses.
Risk management is arguably the most effective way to navigate uncertain circumstances. Changing market conditions, evolving regulations, and technology shifts — they all (and many others) pose risk. But not everyone has the time or resources for traditional risk management. Using a risk management automation platform is the solution.
What Is Automated Risk Management?
Automated risk management uses automation technology, such as software systems and algorithms, to get real-time visibility into processes, gain valuable insights into potential or new risks, and mitigate those threats to avoid undesirable outcomes.
The goal of automation in risk management is to streamline risk management processes, reduce human error, and improve the overall consistency and accuracy of risk assessments and decision-making.
What Is Automated Risk Assessment?
Automated risk assessment refers to the process where a business uses automation risk assessment tools to evaluate and prioritize potential risks and vulnerabilities in its organizations.
Automated assessment focuses on analyzing data to identify patterns and potential risks that manual processes might miss. The automation tools then generate reports and alerts to help risk management teams make informed decisions and prioritize risks.
It’s no surprise that many risk management teams are turning to automated assessment to gain a more comprehensive, efficient, and consistent view of their risks. This approach is based using a proven, reliable risk management framework, which allows teams to assess risks in a systematic and organized manner.
How Risk Management Automation Improves Cybersecurity
A manually driven cybersecurity program cannot assure 24/7 risk monitoring and timely response to threats or problems. The simple truth is that while employees might reduce the level of risk and compliance management required, they can also make errors or forget to report non-compliance, especially when they are feeling overworked or repeatedly performing monotonous tasks. Moreover, inefficient coordination and silos between employees also make it harder for teams to meet their cybersecurity goals and objectives.
The most effective cybersecurity programs have two things in common: (1) A risk-aware culture that aligns with business goals and objectives; and (2) a thorough understanding of key risk principles to know where controls need to be implemented and to what extent.
Implementing risk and security compliance automation gives you access to specialized knowledge, such as operational metrics, threat intelligence, governance controls, and compliance requirements to articulate the risk associated with a specific business process.
Risk management teams can leverage that information to make informed recommendations to leadership on the required controls for protecting those processes. Integrating technical activities and controls from information security teams also improves the overall cybersecurity initiatives of companies.
Risk Quantification: What You Need to Know
Compared to other risk management concepts, risk quantification is a fairly new term that focuses on understanding the financial impact of a given scenario, including which risks to prioritize and which cybersecurity resources to allocate where, to assure better outcomes.
The idea is to quantify the dollar impact of various risk events. Using this information, you can then confidently answer important questions related to cybersecurity, such as:
- How much to invest in a specific cybersecurity program?
- What will be the overall return on investment (ROI) from the program?
- Is the current cyber insurance coverage enough for the initiative?
In a nutshell, risk quantification lets you express risk exposure in clear monetary terms, strengthening the objectivity and accuracy of your risk assessments and understanding the true impact and probability of different risk events.
Take Control of Enterprise Risk Management With the ROAR Platform
Reciprocity’s ROAR Platform gives you real-time visibility into your organization’s risk and compliance, so you have contextual insights to make sound IT and cyber decisions.
It also helps overcome common issues associated with traditional and manual cyber risk programs. For example, you can use the platform to connect team members, breaking down silos that cause inefficiencies, gaps, and blind spots. You can automate workflows and integrate them with your most critical systems to eliminate time-consuming, manual work and streamline collaboration.
Other ROAR platform features include a built-in content library with anytime, anywhere access to expert guidance and best practices and valuable pre-built integrations to give you unified, contextual insights.
Schedule a demo to experience first-hand how Reciprocity can help your organization.
