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Risk, Governance and Compliance

3 simple words that carry immense weight and meaning for any business, anywhere in the world.

Today, many businesses recognize the challenge of implementing risk management, governance policies, and compliance procedures, and of course—digital risk management.

As our worlds of BYOD (Bring Your Own Device), the IoT (Internet of Things), and an always-on, always-connected society permeate every corner of the globe, the risk for businesses—and multinationals in particular—has grown exponentially.

So much so that Gartner predicts that in 2025, one-third of large enterprises engaging in digital business models and activities will have a Digital Risk Officer (DRO) or an equivalent role.

What does that mean exactly? With the extensive technologies now available to businesses and consumers alike, organizations have strived to share information, branding, and content through multiple social channels and many other digital platforms. This creates an enormous bank of digital content and, in all likelihood, a scattered bank of data.

In the United States, how do senior executives—responsible for meeting multiple legislative and regulatory requirements—monitor and manage their digital assets?

As Paul Proctor, Vice President and Analyst at Gartner, explains:
“Digital Risk Officers (DROs) will require a mix of business acumen and understanding with sufficient technical knowledge to assess and make recommendations for appropriately addressing digital business risk.”

Creating a role or responsibility for digital assets within an organization is a smart approach, but how does one individual—or even a team—monitor these assets across a multinational organization?

Businesses need to consider a variety of regulations across different regions. For instance, upcoming amendments to the Data Protection Act, the assessment of technological risks of systems used to manage digital engagement, or even the representation of a brand. All of these, and more, require regular assessment and monitoring so that, if or when a DRO or risk management team is questioned about the organization’s digital assets, they can easily report back to the regulatory body or auditors, demonstrating compliance.

The other major benefit a DRO role brings to an organization is the ability to drive value from digital asset spending. Multinationals, in particular, often have countries or regions producing duplicate or overlapping content. With an accurate understanding of the global digital estate, the DRO can make decisions based not only on the risk profile of assets but also on the value they deliver.

Avoiding unnecessary spending where value may be suboptimal or where assets have become stale due to lack of updates is crucial. Accurately understanding the entire digital estate through effective data capture and governance will provide insights for better and more impactful decisions, create savings, and drive smarter purchasing decisions.

Empower your knowledge base

The majority of businesses, especially multinationals, are fortunate to have a team of knowledgeable employees or consultants—such as lawyers, security executives, risk officers, and senior executives. When combined, these individuals can and should provide a cohesive view of the organization’s digital assets and legislative or regulatory requirements in each location.

• Think globally, act locally. By auditing digital assets that are produced and stored, the risk management team can start to gain a clear view of any challenges or areas of concern while also identifying future risks within a reliable risk management system.
• Set realistic expectations. Regulatory and legislative bodies expect organizations to recognize the importance of their digital assets. However, since digital risk management is still in its infancy, businesses that take the initiative can position themselves ahead of the curve.
• Be proactive. Preventing issues proactively is far better than waiting for problems to escalate. By having a strong risk management policy and procedures in place, you’ll be able to detect, report, and resolve critical issues. After all, prevention is better than constantly firefighting problems.

Digital risk management requires digital solutions. By creating a clear data collection and reporting process, supported by a suitable toolset like CoreStream GRC, you can profile the risk of assets and use that information to compare value—optimizing the balance between risk and reward.

Ultimately, remember that those producing digital assets never envisioned having to comply with today’s growing regulatory demands. However, if you take steps to educate and motivate your organization, you’ll not only ensure compliance but position yourself as a forward-thinking leader in the digital age.

FAQ: Frequently Asked Questions

1. What is digital risk management, and why is it important?
Digital risk management involves identifying, monitoring, and addressing risks associated with an organization’s digital assets. It is critical for maintaining compliance with regulations, protecting brand integrity, and optimizing the value derived from digital assets.

2. What is the role of a Digital Risk Officer (DRO)?
A Digital Risk Officer (DRO) is responsible for assessing and mitigating risks related to digital business activities. They combine business expertise with technical knowledge to manage digital assets effectively and ensure compliance across the organization.

3. Why is compliance with digital regulations more important now than ever?
With the growing complexity of technology and increasing regulatory scrutiny, businesses must ensure that their digital assets adhere to global and local legislative requirements. Compliance helps organizations avoid legal repercussions, reputational damage, and financial penalties.

4. How does CoreStream GRC help with digital risk management?
CoreStream GRC provides a comprehensive toolset for data collection, governance, and reporting. It helps organizations profile the risks of their digital assets, track compliance, and make informed decisions to optimize the balance between risk and reward.

5. What are the benefits of auditing digital assets?
Auditing digital assets allows organizations to gain a clear view of challenges, identify areas for improvement, and ensure compliance. It also helps in streamlining content, reducing duplication, and driving cost savings by eliminating redundant or stale digital assets.

6. How can organizations stay ahead of the curve in digital risk management?
By adopting proactive strategies, such as creating strong risk management policies, using effective digital tools like CoreStream GRC, and educating teams about compliance requirements, organizations can lead the way in addressing digital risks.

7. What should businesses prioritize in building a digital risk management strategy?
Organizations should focus on building a cohesive team of experts, conducting regular audits, setting realistic expectations for compliance, and utilizing technology to monitor, report, and address digital risks effectively.