Addressing the Institute of Enterprise Risk Practitioners (IERP) in early 2024 Chairman Ramesh Pillai pulled no punches in declaring how the world has descended into a state of permanent crisis. Whether geopolitical conflicts, extreme climate events, pandemics or cyber security attacks, we are permanently in chaos.
The challenges that this presents to organisations are seismic. The complexity of the risk landscape is both exacerbated by and navigable through globally interconnected technology. Add to the mix the uncertainty of misinformation generated by public AI, and the whole picture becomes even more confusing.
Risk professionals have their work cut out like never before to deliver a complete overhaul in the approach to enterprise risk management (ERM).
Let’s take a closer look at the trends in enterprise risk management shaping organisational approaches in 2024.
6 trends in enterprise risk management
1. Robust framework to assess emerging risks
Since the Covid crisis of 2020 organisations are becoming increasingly aware of the potential disruption threats caused by global events such as pandemics and natural disasters. If the Permacrisis diagnosis of the IERP stands, similar disruptor events can happen again and they’ll affect many seemingly unrelated fields.
The necessary response of organisations in the face of this onslaught is to allocate more resources to identifying and assessing complex risks, and to developing mitigation strategies. As Pillai states: “Organisations must establish frameworks that allow for flexibility and adaptability… This involves continuous monitoring, scenario planning and engagement with experts.”
Implicit in this approach is the double-edged sword of technology to support the analysis, collaboration and integration necessary to recognise and manage interrelated risks within a robust enterprise risk management framework.
Hence emerging external risks expedite the likelihood of intrinsic risk. Effective management of this risk landscape demands holistic enterprise risk management which is a considerable step up from traditional risk management procedures.
2. Data and analytics
With tools such as Microsoft 365, Power Apps and Microsoft Power BI organisations are collecting and analysing data from a variety of sources to identify patterns and trends, and make more informed decisions about risk management.
Sufficient, trustworthy data is required along with the correct business intelligence software tool-set and careful specification, implementation and customisation. Working with an industry expert helps ensure the enterprise risk management software is properly integrated and fit for purpose.
3. Artificial Intelligence
Risk management data and processes are ideal candidates for automation and proactive notification. Artificial intelligence (AI) and machine learning improve risk identification and assessment, acting as constant risk surveillance on all types and contexts of data being collected and stored by the organisation.
For example, an indexed image or photograph of an engineering site can trigger risk status reports and push notifications highlighting any mitigations required. 
4. Human factors
As organisations embrace the cultural and behavioural aspects of risk management, they are creating environments which are intrinsically safer, more sustainable and resilient. By highlighting risk awareness throughout the entire workforce and encouraging employees to take greater responsibility for managing risk within the remit of their own role, Enterprise Risk Management best practices become a holistic way of operating rather than a discrete process tagged onto a specific activity.
5. Resilience and continuity
The lessons of 2020 have bitten hard. In a high-risk and unpredictable globalised environment organisations are taking the question of massive disruption seriously - and are focussing on building, testing and refining resilience and continuity plans. This includes looking further upstream in their supply chains to create diverse contingencies.
6. Sustainability and reputation
The long-term organisational impact on the environment, society and the economy is a key part of Enterprise Risk Management best practices. Climate change, geo-political turbulence and and social inequality are pressing issues that organisations need to navigate.
How they behave in each of these risk areas has a concomitant effect on their reputation, brand and stakeholders. In addition the risks of cyber-attacks, data breaches and scandals must all be carefully scrutinised and mitigated.
Will you buck or follow these enterprise risk management trends?
In a world where risk is more acute and imminent than ever, organisations need to respond in a broader, deeper and more holistic manner than traditional risk management approaches would allow. Enterprise Risk Management best practices define the correct tools, culture, reach and procedures to meet increasing compliance pressures and ensure resilience.
However, while technology moves quickly to enable these shifts, organisational structures sometimes don’t flex as rapidly, potentially leaving both risk and opportunity on the table.
To understand how your organisation can benefit more from your technology platform to take better advantage of the current enterprise risk management trends, read our guide.
