Understanding today's risk management challenges
In 2024, the business landscape has been marked by significant challenges, highlighting the critical importance of Enterprise Risk Management (ERM). According to confidential assessments by the US Office of the Comptroller of the Currency, reported by Reuters, 11 out of 22 large banks were found to have "insufficient" or "weak" management of various risks, ranging from cyberattacks to employee errors. Similarly, recent data from Check Point Research as reported by Reuters, indicates that cyberattacks on U.S. utilities surged by nearly 70% in 2024, underscoring the growing threats to operational continuity.
These alarming trends emphasize the necessity for organizations to proactively identify, assess, and mitigate risks that could impede their objectives. By implementing a comprehensive ERM strategy, businesses can safeguard their operations and position themselves to capitalize on opportunities amidst uncertainty. This blog covers key risk types and shows how 6clicks helps businesses tackle challenges and streamline risk management.
What is enterprise risk management?
Enterprise Risk Management (ERM) is a comprehensive, organization-wide approach to identifying, assessing, managing, and monitoring risks that could potentially affect an organization's ability to achieve its objectives.
An enterprise risk management strategy typically involves the processes of risk identification, risk assessment, risk mitigation, and monitoring. During risk identification, activities such as brainstorming, interviews, and collaboration with various departments are done to determine all potential risks that pose a threat to the organization. The likelihood and impacts of identified risks are then evaluated during risk assessment to inform prioritization and mitigation initiatives. Continuous monitoring of risks is also necessary to ensure that security measures remain applicable.
Key types of business risks and their implications
Strategic risks
Strategic risks are potential challenges that can significantly impact an organization's ability to achieve its long-term objectives, often arising from external factors such as regulatory changes, market dynamics, or technological advancements. For instance, the implementation of stricter environmental laws can compel companies to alter their production processes, leading to increased costs and operational adjustments. Failure to comply with these new regulations can result in legal penalties and damage to the company's reputation.
To effectively manage such strategic risks, organizations can utilize platforms like 6clicks, which offers comprehensive features tailored for risk management, including regulatory compliance management, risk assessment and treatment, and monitoring and audits.
Operational risks
Operational risks involve disruptions to daily business activities, such as supply chain issues, system failures, or cybersecurity threats. Mitigating these risks requires robust internal controls and real-time incident tracking to minimize disruptions and maintain business continuity.
The 6clicks Controls module enables organizations to implement controls and monitor compliance with internal policies and regulatory requirements, ensuring that security measures for safeguarding your operations are in place. Meanwhile, our incident management functionality equips you with custom incident reporting forms, comprehensive issue and incident registers, and automated workflows and task assignment features to help you capture, track, and address threat events promptly.
Financial risks
Financial risks pertain to threats to an organization's financial health, including currency fluctuations and credit risks.
With 6clicks, you can integrate financial data with risk assessments conducted within the platform and harness advanced insights to predict risks and protect profitability. Our Reporting & Analytics feature empowers organizations to easily generate reports on risks, issues, and compliance status and leverage actionable insights to make informed decisions.
Compliance risks
Compliance risks arise from non-compliance with legal or regulatory standards, potentially leading to fines and reputational damage. Organizations can streamline compliance by using automation and AI to accelerate labor-intensive tasks and improve accuracy in compliance tracking and validation.
6clicks' AI engine, Hailey, can automate the mapping of internal controls and policies to specific provisions within standards and regulations, allowing you to gain a detailed view of your compliance level in just seconds so you can make the necessary adjustments and maintain ongoing compliance with evolving requirements.
Avoid penalties, align with industry standards, and adhere to regulations by transforming your compliance process with 6clicks.
Reputational risks
Reputational risks can result from negative publicity or ethical breaches, affecting stakeholder trust. Aside from prioritizing proactive risk management and fostering a culture of security preparedness, demonstrating your organization's compliance and commitment to cybersecurity can help build stakeholder trust and prevent reputational damage.
The 6clicks Trust Portal enables you to upload certifications, audit findings, technical documentation, risk assessment reports, and other evidence on a secure public platform to verify your compliance and gain the trust of external stakeholders such as customers and regulators.
Technological risks
Technological risks, including cybersecurity threats and rapid technological changes, pose significant challenges. For example, a data breach exposing sensitive customer information can lead to legal consequences and loss of customer trust.
6clicks' vulnerability management solution and AI-driven insights can enable organizations to identify potential threats, manage vulnerabilities, and stay ahead of technological risks.
Simplify enterprise risk management with 6clicks
To begin your journey with 6clicks, schedule a consultation with our team. This session will provide a personalized demonstration of our AI-powered GRC platform, showcasing features such as the Hub & Spoke architecture for efficient multi-team management and our Hailey AI engine for streamlined risk management and compliance processes.
Additionally, you'll gain insights into our comprehensive Content Library, which offers access to hundreds of standards, frameworks, control sets, assessment templates, risk and issue libraries, and other content to support your compliance and risk management needs.
Our team will also discuss how 6clicks can be tailored to your organization's specific requirements, ensuring seamless integration into your existing workflows. Experience firsthand how 6clicks can transform your governance, risk, and compliance processes.
Written by Heather Buker
Heather has been a technical SME in the cybersecurity field her entire career from developing cybersecurity software to consulting, service delivery, architecting, and product management across most industry verticals. An engineer by trade, Heather specializes in translating business needs and facilitating solutions to complex cyber and GRC use cases with technology. Heather has a Bachelors in Computer Engineering, Masters in Engineering Management, and a Doctorate in Information Technology with a specialization in information assurance and cybersecurity.
