Contributor Insight: Key Takeaways from the GRC Summit in Sydney
Submitted by: Ansarada
Contributor Insight - At the recent GRC Summit in Sydney, Rachel Riley, co-founder and head of GRC/ESG at Ansarada, led a fascinating roundtable discussion titled "The imperative intersection of operational resilience and sustainability". The conversation provided rich insights into the role operational resilience plays in sustainability and the ways businesses can navigate the associated risks and opportunities.
Drawing from these insights, let's explore actionable steps businesses can take to bolster their resilience and sustainability in a perpetually evolving risk environment.
Top risks: AI, cyber security, outsourcing and asset reliability Identifying and understanding potential threats is a fundamental step towards operational resilience. AI, privacy and cyber security, third-party risk management, and asset reliability following adverse weather events emerged as some of the top risks.
Addressing these risks appropriately within an organisation, through strategic planning, technology integration, and effective risk management, is crucial. Embracing an inside-out framework for operational resilience (OpRes) demands a shift from an 'outside-in' to an 'inside-out' perspective. Instead of merely reacting to external factors, OpRes focuses on understanding internal processes, resources, and potential disruptions. This approach helps pinpoint where significant harm could occur and where concentrated efforts are necessary.
Changing the Nature of Risk Approach
The future risk approach should start with understanding the most critical processes that deliver services to consumers and the sub-processes and resources that underpin them. By mapping these out, organisations can gain a comprehensive view of how disruptions might impact their operations. Scenario testing also forms a significant part of this process, aiding businesses to prepare for supply chain disruptions or other significant impacts.
Building Board Buy-In and Education
Gaining board buy-in and education presents a substantial challenge. It's essential for boards to delve deeper than just a top-level overview and grasp the intricacies of risk management. Equally crucial is the education of board members, enabling them to understand their role in driving resilience within the organisation.
Sustainability shouldn't just be a box-ticking exercise or a side regulation. It needs to be deeply embedded into the strategy and culture of a business. Cross-functional working groups that integrate teams for clear decision-making, ownership, and direction are crucial for achieving this. Regulatory changes Businesses need to adapt and align themselves with the evolving regulatory environment surrounding OpRes and scenario testing such as CPS230 in Australia or PS21/3 in the UK.
Utilising AI for scenario testing AI can be employed to enhance scenario testing, analysing historical impacts and suggesting potential future scenarios and corresponding actions. AI also opens doors for new product development and solution innovation.
In conclusion, operational resilience and sustainability intersect to form an imperative in today's risk environment. By understanding this intersection and taking the necessary steps, organisations can build resilience and sustainability into their strategies, ultimately improving their overall risk management.