Executive Decision - March/April 2008 - (Page 45)

Management Strategies Economic Profile Leadership Life At the top Technology Finance/legal The interdependencies of toda y’s business world mean tha due diligence around risk management— t and IT risk—must extend beyond comp any boundaries. How does such a transformation begin? By considering risks intelligently and embracing a broader view of risk—one that encompasses strategic issues facing the company as a whole rather than just Here are some key considerations for developing risk intelligence: Risk-Taking for Value Creation RISK those that impact the IT operation. To advance to a higher-level of risk management—to become what we call “risk intelligent”—CIOs must cultivate a greater Risk intelligent enterprises operate under a philosophy that encompasses not only risk mitigation, but also risk-taking as a means to value creation. Firms that focus only on protection of assets and risk avoidance may survive, but are less likely to prosper. Risk-taking for reward can assume many forms, as in launching new products, entering new markets or acquiring new businesses. Higher returns come at the price of higher risk. As an example, a number of organizations rely on a merger & acquisition (M&A) as a growth strategy. Information and technology risk management must be thoroughly considered in the pre- and postintegration due diligence efforts in order to effectively account for a number of risk areas, including legal, regulatory, contract and compliance requirements, as well understanding of risk and the role that IT can play in supporting more coordinated risk management efforts. Companies that take steps to anticipate and prepare for risks and major business disruptions before an event takes place will have an easier and faster recovery, as well as competitive advantage in the marketplace. And IT professionals who facilitate this may also gain an advantage—in climbing the career ladder. Understanding risk and its many forms, beyond IT risks, can help companies and CIOs better prepare and respond to disaster as well as opportunity. While risk is often associated with the misfortunes brought on by hurricanes, tornadoes or fraud, risk can also translate into opportunity, success and reward brought about by proactive, intelligent risk-taking. Companies that recognize different types of risk will be on their way to adopting the principles of risk intelligence. EXECUTIVE DECISION I March-April 2008 45

Table of Contents Feed for the Digital Edition of Executive Decision - March/April 2008

Executive Decision - March/April 2008 Contents Index of Advertisers Contributing Editors From the Editor's Desk Publisher's Note You Be the Judge - Unionization Thought Leader - Pitney Bowes Management - Flying High for Long-Term Results Strategies - Sovereign Wealth Funds Cover Story - In Whom Do We Trust? The Movement for Greater Accountability & Disclosure Finance/Legal - The New Boycott Model Green At Work - Transforming for Sustainability Technology - Embracing Risk Leadership - Executive Reputation Management The Global Village - China Moves to Curb Prices Economic Profile - California Gold Rush Transformations - I Can See Clearly Now, The Brain Is Gone Marketing - Effectively Using Market Research The Bottom Line - Brands: A Shrinking Advantage or Shifting Advantage? Pulse - Pandemic: Not If But When SPECIAL SECTION - Living On the Green: Luxury Golf Destinations

Executive Decision - March/April 2008

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