What’s driving enterprise risk management in 2023?
Enterprise risk management software is an essential tool for businesses across the world. In Australia, demand for effective enterprise risk management solutions has grown, with businesses recognising the need to proactively manage and mitigate a range of risks. Stringent regulatory requirements, cyber threats, financial risks and risks to reputation are driving enterprise risk management (ERM) in Australia. Let’s look at three key trends.
Adoption of a compliance culture
While the threat of financial penalties was a key driver in businesses adopting the use of enterprise risk management tools, heightened public awareness of risks means businesses are prioritising a culture of compliance to manage and maintain risks and their reputation.
Workplace culture is a key factor driving employee engagement and risk management. A compliance culture prioritises ethical behaviour and accountability to ensure the values of the business are reflected at all levels. It’s a culture that:
- supports strong governance processes
- is transparent on expectations
- recognises people for their outputs and behaviours
- balances KPIs with compliance and conduct risk activity, and
- aligns goals with behavioural expectations.
A compliance culture brings significant benefits to businesses by helping to reduce financial and reputational risks, while improving employee engagement.
Changing face of work
The way we work has undergone a huge shift. We’ve seen businesses embrace agility in their approach to how their people work and for most of us this has resulted in more flexibility. This flexibility has given people greater work-life balance, however a reliance on remote work, cloud-based solutions and new technologies has surfaced additional challenges.
With a distributed workforce businesses need to ensure they have the systems in place to identify and manage these risks, while supporting their people.
The post-Covid environment, geopolitical uncertainty, increases in inflation and record rate rises in Australia are causing businesses concern. In this landscape businesses are asking their people to do more and accelerate performance, while putting the brakes on more investment.
Focus on a compliance culture supported with enterprise risk management systems in this pressurised environment is critical to ensure risks don’t fall through the cracks.
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Why use enterprise risk management software?
When enterprise risk management systems are lacking, your business may be exposed to a range of risks.
Enterprise risk management tools provide businesses with a systemic approach to managing risks and allow businesses to prioritise risks based on potential impact to the businesses.
Cloud-based solutions offer businesses significant benefits, including:
- Access to real-time data and analytics.
Integrating an enterprise risk management platform with business processes helps streamline the approach to managing risk and improving operational efficiency.
Data analytics can help businesses to identify key risks and improve informed decision making about risks.
How can YakTrak help?
With the increasing importance of compliance in risk management, businesses can use tools like YakTrak to reduce the risk of employee non-compliance and stay ahead of compliance risks.
YakTrak will help you gain superior visibility over the daily conduct of your people: improving performance, reducing risk and minimising the danger of compliance breaches by helping to promote a culture of continual learning and training.
YakTrak helps by:
- Providing the system to manage a risk from when a risk first arises, through to coaching, goal setting, remediation and reporting.
- Engaging employees by providing clarity over conduct risk expectations and driving development activity around behaviour gaps.
- Improving employee engagement by providing consistent coaching and development activity with tracked outcomes.
- Supporting a cycle of identification, assessment, response and monitoring of risks with customisable workflows that suits your business structure and processes.
- Ensuring each department that needs to know about breaches does with powerful reporting and dashboards.
YakTrak wrangles all the information you need to build capability – helping you to have an enterprise-wide view so problems don’t fall through the cracks.
Get in touch with us for a yak or to book a demo.
Photo by Ksenia Kartasheva: Pexels