Risky Business

Despite what I tell my 13 year old son, I really am not a trendsetter, nor a very good prognosticator of things to come (my latest investment summary statement will more than confirm that statement!). But I like to believe I’m at least smart enough to recognize a trend – especially when lots of really smart people are already talking about it. And what I’m hearing and reading a lot lately is that companies are really shifting their focus from compliance to managing risk.

Interesting report

I just finished reading Forrester Research Analyst Chris McClean’s latest research, Trends 2009: Governance, Risk, And Compliance Hit The Big Time. (You’ll need to either have a subscription or purchase this report to view it). In the summary, Chris writes:

“Another bubble burst. The chain reaction stemming from the credit crisis caused an implosion of the global economy. Political, corporate, and economic leaders have argued ferociously about how we can reverse the damage, questioning business ethics, the role of government, and even fundamental economic assumptions. While the dust settles, professionals responsible for governance, risk, and compliance (GRC) will play major roles in transforming the corporate landscape to reduce the possibility for another such collapse. Process and technology strategies in 2009 will focus on risk standardization, increasing oversight, performance and risk management coordination, evolving expectations of corporate responsibility, and big shifts in GRC technologies.”

In the subsequent report four out his five big trends in GRC for 2009 have managing risk more efficiently as a central theme. If this isn’t at the top of your priorities for this year, why not?