Risk within enterprise is a challenging conundrum. Risk executives must ensure the right protections are in place to ensure assets are always secure. While in other parts of the business, teams are coming together to discuss how they can disrupt processes to ensure future survival.
This challenge has attracted a lot of traction with editorials generated in the cybersecurity space. Specialists believe that as the impact of disruption becomes more deeply felt, there will be a simultaneous rise in risk to an organisation’s practice.
Which begs the question, do companies need to increase their risk appetite?
One of the areas in which this question is being challenged is within the financial services arena. A heavily regulated industry, banks are being forced to drive change and remain relevant, whilst adhering to strict financial management protocols.
Speaking on risk appetite, Samantha Macleod, General Manger of Cybersecurity of ME in Australia, told OmniChannel Media that “A well-defined risk framework, means a business is not being ‘forced’ to change their risk appetite.”
“But rather has a mechanism by which to consider each innovation based on the organisations willingness to accept risk,” she said.Some businesses may refrain from pulling the trigger on certain technology if “foundation cybersecurity capability is not in place.”
Macleod said one could suggest placing a cybersecurity element in an advisory role while new initiatives are at planning stage, brings new thinking to the table. This could mean the business becomes exposed to, “more relevant innovative trends while maintaining a balance between operational risk and business growth”.
The “innovative trends” that Macleod refers to have the potential to change the way Australian’s see banking. Current disruptive forces for the banking industry like peer-to-peer lending and cryptocurrency have the power to transform the finance industry.
However, as Macleod suggests, it is critical to have risk frameworks that can manage innovations such as these to ensure advantage can be made.