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Click here to access subscription content at The RTJ Bridge - The Premium Version of The RiskTech Journal 〰️
The RiskTech Journal
The RiskTech Journal is your premier source for insights on cutting-edge risk management technologies. We deliver expert analysis, industry trends, and practical solutions to help professionals stay ahead in an ever-changing risk landscape. Join us to explore the innovations shaping the future of risk management.
AI's $19.9 Trillion Economic Boost Signals Rapid Growth for Integrated Risk Management
The digital revolution is accelerating, and artificial intelligence (AI) stands at the forefront of this transformation. Released today, IDC's latest research predicts that AI will contribute an astounding $19.9 trillion to the global economy by 2030, driving 3.5% of global GDP. For every dollar invested in AI, $4.60 is expected to be generated in economic value. These findings not only underscore AI's profound economic impact but also highlight the escalating need for robust Integrated Risk Management (IRM) solutions to navigate the complexities that come with such rapid technological advancement.
The Over-Ambitious ESG Push: Why a Risk-Based Approach to Sustainability is Needed
Many companies now face backlash for juggling environmental, social, and governance goals as inseparable. While these are all important, they represent distinct areas that require tailored approaches. A more pragmatic solution is a risk-based approach to sustainability, where environmental objectives are integrated directly into a company's risk management framework.
Risk Transformation Is Accelerating: Why 68% of Companies Are Integrating Risk Management Systems
With 61% of executives anticipating a significant increase in the level of risk over the next three to five years, the need for a more sophisticated and integrated approach to risk management has never been more pressing.
Why Fortune 500 Companies Are Turning to IRM to Tackle AI Risks Head-On
Given the complex and evolving nature of AI-related risks, traditional risk management approaches may fall short. The fragmented and siloed nature of many corporate risk management strategies can make it difficult to get a clear, holistic view of AI risks and their potential impact across the enterprise. This is where Integrated Risk Management (IRM) becomes critical.
Top 10 Questions Answered in the 2024 GRC Report: Insights from the IRM Navigator™ Vendor Compass
With the IRM market projected to grow to $133.2 billion by 2031 and the GRC segment expected to double, reaching $32.5 billion, understanding this landscape is critical for organizations aiming to stay competitive. To help you grasp the value of this report, here are ten essential questions it answers.
Strengthening Healthcare Resilience: Integrated Risk Management as a Response to the Change Healthcare Cyberattack
The recent cyberattack on Change Healthcare, a pivotal entity in the U.S. healthcare ecosystem, has laid bare the vulnerabilities in the sector's interconnected infrastructure. This incident, which disrupted insurance billing and payments for months, underscores the critical need for a more comprehensive approach to risk management. As the healthcare industry grapples with the fallout, integrated risk management (IRM) emerges as a vital framework to bolster resilience and safeguard against future threats.
Streamlining AI Risk Management with NIST and IRM
The rapid advancement of artificial intelligence (AI) technology has brought about significant benefits and transformative potential across industries. However, with these advancements come inherent risks that must be managed effectively to ensure AI systems are trustworthy, safe, and aligned with ethical standards. The National Institute of Standards and Technology (NIST) has developed the AI Risk Management Framework (AI RMF) to address these challenges. This framework, particularly its recent expansion to include the Generative AI Profile, offers a comprehensive approach to managing AI risks. When integrated with an Integrated Risk Management (IRM) strategy, organizations can achieve a robust risk management posture.
The Siloed Nature of ERM: A Barrier to Comprehensive Risk Management
A recent report by the Association International Certified Professional Accountants (AICPA) and North Carolina State University’s ERM Initiative highlights a critical challenge in enterprise risk management (ERM): its isolation from other risk disciplines. Despite the growing complexity and volume of corporate risks, only 37% of organizations report having complete ERM processes, with 30% rating their risk management “mature” or “robust”.
Beyond Cyber Insurance: Strengthening Risk Management Frameworks
The recent outage caused by a software bug in CrowdStrike's quality-control system has underscored the escalating nature of digital risk events. The disruption, which affected sectors ranging from aviation to banking, has led to insured losses estimated between $400 million and $1.5 billion, according to cyber analytics firm CyberCube. This incident may be the largest single cyber insurance loss to date. Companies must move beyond traditional reactive measures and invest in proactive, integrated risk management (IRM) frameworks encompassing a comprehensive view of potential threats.
How IRM Technology Can Enhance Banking Resilience: Insights from BIS
In his speech titled “An Integrated Approach to a Safer and More Resilient Banking System,” delivered on July 19, 2024, at the Central Reserve Bank of Peru’s 15th Annual Conference in Cusco, Agustín Carstens, General Manager of the Bank for International Settlements (BIS), highlighted the importance of comprehensive risk management in the banking sector. Reflecting on the banking turmoil of March 2023, he underscored how the failures of institutions like Credit Suisse and Silicon Valley Bank (SVB) stemmed from inadequate governance, weak risk oversight, and poor regulatory compliance.
Global Digital Breakdown: Lessons in Resilience and Integrated Risk Management
The recent CrowdStrike update incident serves as a wake-up call for organizations worldwide. Our digital landscape is inherently fragile, and the consequences of a single misstep can be far-reaching and severe. By adopting an Integrated Risk Management approach, organizations can better navigate the complexities of today’s digital environment, ensuring resilience and continuity in the face of unexpected disruptions.
Balancing Innovation and Risk: AI’s Role in Boardroom Strategy
As artificial intelligence (AI) steadily integrates into corporate governance, boardrooms are witnessing a transformative shift. The concept of a 'robo-director,' where AI provides insights alongside human board members, is becoming a reality. This emerging trend raises significant questions about governance, oversight, and risk management. Wheelhouse Advisors' IRM Navigator™ can play a pivotal role in navigating these uncharted waters, ensuring that AI is leveraged effectively while mitigating associated risks.
How Integrated Risk Management (IRM) Can Significantly Reduce Cyber Insurance Premium Costs
In today's digitally-driven business environment, the threat of cyber-attacks has escalated to unprecedented levels, necessitating robust cyber defenses to secure competitive cyber insurance premiums. This article delves into how Integrated Risk Management (IRM) can be pivotal in reducing cyber insurance premiums, enhancing overall risk resilience, and positioning businesses for sustainable success.
Moving Beyond a Security-Based Mindset: The Need for Integrated Disclosure and Internal Controls
In today’s interconnected and complex business environment, it is crucial for organizations to shift away from a security-based mindset that focuses narrowly on immediate threats. Instead, they must adopt an integrated risk management (IRM) approach that balances both tactical and strategic risk perspectives. Lessons learned from the SolarWinds cyberattack serve as a stark reminder of this necessity.
Wheelhouse Risk Cycle: Diagnose AI Risks as SEC Filings Indicate Rising Concerns
As AI continues to dominate discussions in tech earnings calls, the enthusiasm surrounding its potential is palpable. Companies have been quick to assure investors of their AI-driven futures. However, this optimism is increasingly tempered by a growing recognition of the risks AI poses, revealing a crucial stage in the Wheelhouse Risk Cycle. Are we truly entering the AI pit of empty promises, or can these risks be managed strategically?
SEC Clarifies Cybersecurity Incident Disclosure Rules: Key Takeaways for Companies
The Securities and Exchange Commission (SEC) continues to refine its stance on the disclosure of material cybersecurity incidents, addressing corporate concerns and compliance complexities. On June 20, 2024, Erik Gerding, the Director of the SEC’s Division of Corporation Finance, provided further clarification regarding the selective disclosure of cybersecurity incidents. This move comes in response to persistent questions surrounding the SEC’s final cybersecurity disclosure rules, specifically under Item 1.05 of Form 8-K.
Leading with Purpose: How Boards Can Drive Sustainability Through Integrated Risk Management
The integration of sustainability into business strategy is no longer optional; it's imperative for long-term success and resilience in today's volatile business environment. The recent 2024 European Corporate Governance Conference, sheds light on the multifaceted benefits and challenges of embedding sustainability into corporate governance, emphasizing the crucial role of Integrated Risk Management (IRM).
Revolutionizing Risk Management: Insights from the Federal Reserve's Chief Risk Officer
In her keynote remarks at the XLoD Global conference, Mihaela Nistor, Chief Risk Officer of the Federal Reserve Bank of New York, provided a compelling analysis of the current risk landscape and the evolving nature of risk management. Nistor's address highlighted the multifaceted and interconnected risks that organizations face today and underscored the importance of integrating advanced technologies, particularly artificial intelligence (AI), into risk management frameworks.
The Critical Role of Leadership in Implementing an Integrated Risk Management Framework
The appointment of Melissa Martinez as Chief Risk Officer (CRO) at Meridian Capital Group, as reported by the Wall Street Journal, underscores a fundamental truth in risk management: strong leadership is paramount for successfully implementing an Integrated Risk Management (IRM) framework.
Generative AI in the “Pit of Empty Promises”: Understanding the Wheelhouse Risk Cycle
The recent Wall Street Journal article, "The AI Revolution Is Already Losing Steam," provides a stark reality check on generative AI's limitations and challenges. This emerging technology, which once promised to revolutionize industries, now appears to be falling into what we at Wheelhouse Advisors term the "Pit of Empty Promises" within the Wheelhouse Risk Cycle.