Automation of Risk Management Issues

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Table of Contents

Steps Used in the Automation of Risk Assessment and Remediation
Suggestions and Comments
Conclusion
Works Cited

The risk environment is continually advancing in the present-day complex, IT-driven, and automated world. Companies should, therefore, implement strategies to enhance the monitoring and signaling of important risks whenever they occur (Hamilton). Major business-related risks assume many forms, for instance, financial, economic, compliance, fraud and security, and operational. This, therefore, highlights the increasing need for implementing cost-effective approaches to enhance development and operation of ‘control safety nets’ around these risks. The paper summarizes the methods adopted by organizations to ensure the automation of their risk management process and the perceptions of these procedures.

Steps Used in the Automation of Risk Assessment and Remediation

Identifying the tasks requiring automation is the initial critical step companies typically employ to enable automation. Distinguishing the exact tasks to be automated – subparts and processes of the risk remediation and assessment system – is essential in ensuring this procedure’s success and smooth running. Targeting repetitive tasks that need minimal human ingenuity represent the prime activity for the process.

Gathering the required data is the second step. In this stage, one needs to collect all the information regarding the procedures that a firm plans to automate. This activity often helps the organization to get an up-to-date overview of the different facets of the system that must be considered during the automation process.

Defining targets is the third step. During the execution of any task, it is usually crucial to ascertain the “how.” Therefore, under this phase, institutions typically distinguish and define what they hope to attain through the automation procedure. This includes improved security, minimization of errors, or increased efficiency in the company’s processes. Under this stage, targets are usually selected based on security objectives and organizational goals.

The fourth step is selecting the automation system. Once the firm has a clear conception of the “why” with regards to its automation efforts, it then starts to identify the appropriate software tools for the automation procedure. There are typically an extensive variety of tools available within the marketplace, and selecting equipment or technology that fits one’s organizational needs and budgetary constraints entirely can be an increasingly complex task. This, thus, underscores the need for the firm to hire technological experts under the particular domain to ensure the proper choice of the tool as per the institution’s needs.

Involving employees in this process represents a very crucial step. Horvath underscores the significance of involving workers in every phase during the firm’s risk remediation and assessment automation due to various advantages. First, involving team members ensures that they do not feel ignored or replaced by the implemented technology. Second, active workers’ involvement in the automation tasks facilitates aspects such as training. Organizations should, therefore, take care of their workforce’s needs during the change process.

The sixth step is employee training. All organizations require employees with in-depth training and proficient knowledge of its risk management platform. This risk management approach is of no importance to the firm if its team members and risk owners lack the cognizance of how to manipulate the technology to its full potential to attain its overall goal (Smith). This, thus, emphasizes the significance of integrating essential training programs into the implementation process to ensure the proper training of the workforce in risk management practices and the relevance of the adopted software in this operation. Furthermore, the aforementioned process facilitates the effective deployment of technology and its associated policies within the workplace.

Deployment and evaluation should be done without significant hitches if other steps have been executed effectively. Once the automated risk assessment system has been deployed, it is recommended that the firm takes the appropriate measures to evaluate its performance on all primary fronts, which are critical to its goals. The system should also be updated regularly to ensure that it meets the ever-changing digital environment’s challenges and needs.

Suggestions and Comments

The procedure described above facilitates the proper implementation of the automated risk management system. Employee training, for instance, makes the proper deployment of the approach within the workplace easier. Utilizing the appropriate software offers an audit trail delineating the “how,” “where,” “when,” and “what” to satisfy outside investigators and regulators, i.e., its fosters compliance. Furthermore, to ensure proper implementation of a risk management system, I suggest that companies employ automated risk assessment approaches that facilitate

The systemization and streamlining of business procedures; this will help in synchronizing the various company processes with the selected risk assessment approach;
The use of detailed risk registers to ensure that all the details fed into the system are accurate and correct;
Automation of task assignment with corresponding due dates to direct distinguish risks to particular users for further evaluation;
The scheduling of plans for risk-related tasks, monitoring progress, and encouraging accountability;
The tracking of different expectations all through the firm as this will make it easier to compare what is expected against what has been achieved;
Links the system to third parties and particular assets;
The collection, organizing, evaluation, and reporting of crucial risk-related data.

Conclusion

Although practical, manual methodologies for analyzing and managing risks have been associated with the increased likelihood of disruptive incidents’ occurrence due to the unstructured documentation of risks and its associated cases. This consequently impacts the firm’s capacity to establish accountability for risk mitigation or remediation. On the other hand, automated risk assessment facilitates the timely identification and proactive termination of risk-related issues, thereby minimizing their prospective impacts.