Cybersecurity Risks have become a common problem for many IT professionals who are involved in the risk management process of their business enterprise. These risks usually have the potential to disrupt vital business functions that require immediate attention and mitigation. Since most business enterprises operate their processes on the internet, there is a need for a more advanced and integrated approach to managing business risks. Integrated Risk Management (IRM) not only help organizations in dealing with cybersecurity threats, but it helps them manage all risks associated with the business including human resources and public relations.
What is Integrated Risk Management?
According to the technological research and consulting firm, Gartner, IRM or Integrated Risk Management is a set of practices and processes supported by a risk-aware culture and enabling technologies, that improves decision making and performance through an integrated view of how well an organization manages its unique set of risks.
Thus, IRM is a holistic approach that a business enterprise has towards risk management that includes IT (information technology) risks as well as business risks. Integrated Risk Management encompasses every business function. Some functions which are not usually associated with risk management like human resources, public relations, and external suppliers also comes under IRM.
IRM assists business enterprises in mitigating, avoiding, or responding to risks in the best possible manner. The most important objective of IRM is to protect the business processes and the entire enterprise. Closely related to ERM or Enterprise Risk Management in many ways, IRM does not focus on risk mitigation strategies alone. IRM has more emphasis on managing risks at the system and technology level by implementing and monitoring controls.
Components of Integrated Risk Management
Gartner also defines IRM using its attributes. There are six components of Integrated Risk Management, these are as follows:
- Strategy – This involves creating a list of business risks and organizational risks and determining the level or type of risk. The risk mitigation strategy must be aligned with the objectives of the business enterprise.
- Identification and Assessment – This process involves the identification, evaluation, and prioritization of risk types through risk analysis.
- Response – Next step is creating a response strategy to mitigate, avoid, and respond to risks.
- Communication and Reporting – The risk management or mitigation strategy must be reported and communicated with the stakeholders through appropriate channels.
- Monitoring – In this process, risks are monitored after the implementation of the risk management strategy.
- Technology – Monitoring and managing risks through an IRM solution or architecture.
Integrated Risk Management Maturity
By implementing an effective Integrated Risk Management program or solution in an organization, risk management and IT professionals can better monitor and manage operational risks. Integrated Risk management architecture like RSA Archer, helps organizations manage risks from multiple domains in a coordinated manner. As risks evolve, so does the IRM solution. This strategy is referred to as integrated risk management maturity.
Achieving IRM maturity is not an easy task, and the risk management approach needs to evolve with time. It is a constant process that requires the involvement and agreement of all the stakeholders in an organization. Integrated Risk Management focuses on creating a culture of risk management and awareness in the organization from a component level. Therefore, organizations with a mature integrated risk management program can take advantage of the opportunities provided because of business risk and turn it around to stay ahead of their competition.
Integrated Risk Management is an important aspect of an organization’s journey to mitigate and manage risks. Thus, having a mature IRM solution through platforms like RSA Archer can help business enterprises succeed in their objective of protecting their business from various risks. Our RSA Archer Consulting Services helps organizations to achieve integrated risk management maturity along with assistance in its implementation.