Before diving deeper into the benefits that a companies will enjoy from source code escrow, we’ll briefly examine the nature of enterprise risk management (ERM).
ERM centers around planning, spearheading, and handling the ongoing operations of an organization. Done in a way that offsets the adverse effects that risk can have on continuity, capital and earnings.
What is Enterprise Risk?
Realistically, every decision we make involves some sort of risk. People take a risk every time they cross a busy street without waiting for a traffic light to turn green. Or when they lift a heavy piece of furniture.
But what makes something a distinct enterprise-level risk?
These risks generally have to do with a company’s financial, strategic, and operational functions, which these days virtually always involves IT systems.
Why ERM is Becoming More Prominent
As the digital age grows with seemingly no bounds, businesses are becoming more connected with cyberspace and rely on it for success.
Now, investors and regulatory bodies keep a keen eye on risk-management policies and procedures. Throughout many industries, it’s mandated that boards of directors scrutinise and report on the efficiency of the risk-management processes.
An ERM Mentality Shift
Many of the pitfalls of ERM stem from the culture within companies.
Instead of treating the reduction of enterprise risks as something everybody must understand, companies brush it off as an IT compliance obligation.
Such a mentality obfuscates and complicates ERM. The only time it’s discussed is when a chief information officer discusses compliance issues in jargon-speak that nobody understands.
In 2019, companies mustn’t just aim to meet IT standards as a tick-box of sorts. Decision-makers and leaders must prioritise overall risk reduction. Meaning, there must be visibility into the total security of the organisation. This will aid in catalysing new, transparent dialogue surrounding ERM.
How to Change Corporate Perceptions of ERM
Here are a few key methods that help organisations bolster their ERM practices:
Establishing a scope:
- Define vital business processes and related risks
- Then, prioritise processes and risks