| What You Don't Know About Risk Might Hurt You | | | | may need near real-time updates and this can put a |
| Does anyone besides me remember the movie | | | | strain on even the best run IT department. |
| "Risky Business" from the '80s? You know, it's the | | | | As we in IT are only all too well aware, any |
| one that launched Tom Cruise's career - he plays a | | | | risk-management application is only going to be as |
| kid who takes some big chances, has an adventure, | | | | good as the quality of the data that is being fed to it. |
| and then ends up with the girl in the end. Well, CIOs | | | | This means that there may be additional data |
| have a opportunity to star in their own version of | | | | scrubbing and / or normalization activities that need |
| Risky Business - but their role has to do with | | | | to take place before the data is presented to the |
| selecting and implementing risk management | | | | risk-management solution. |
| applications that just might save the company... | | | | After having gone through the effort of selecting, |
| All About Risk-Management Solutions | | | | purchasing, and hooking up a complex |
| The global economic meltdown of 2008-2009 | | | | risk-management solution the CIO has one more role |
| revealed that most companies really have no idea | | | | to play - doubter. We all know how this goes: an |
| what kind of risks they are taking when they make | | | | application cranks out a pretty looking result and |
| business decisions. The world has gone global and so | | | | everyone stands around looking at it as though it had |
| just about every decision that a company makes | | | | just come down the mountain carved into a couple |
| could come back to haunt it. If only there was some | | | | of stone tablets. |
| way to see into the future. | | | | The CIO needs to be the one to step back and |
| Sadly, a magical crystal ball that will reveal the | | | | remind everyone that any risk-management solution |
| effects of a company's decisions has not yet been | | | | is not some sort of magic box no matter how much |
| invented. However, we've already got the next best | | | | data you might be feeding into it. Instead, everyone |
| thing: risk-management systems. | | | | needs to be reminded that the application is telling |
| As more and more companies start to investigate | | | | you what might happen in the future. It will tell you |
| how a risk-management system could help them to | | | | what you should do, but it won't take the action for |
| make better decisions, the opportunity for future | | | | you - that's going to still require human decision |
| CIOs to step up and lead the charge has arrived. | | | | making. |
| Robert Iati over at the TABB Group says that | | | | What All Of This Means For You |
| spending on risk-management solutions grew at | | | | We're always talking about that IT / Business |
| 11.5% from 2009-2010. | | | | alignment thing and trying to come up with different |
| As a future CIO, you may be called on to help sort | | | | ways to make it happen. The global economic crises |
| out just exactly what kind of risk-management | | | | of 2008-2009 has caused firms to start to seek out |
| solution would work best for your company. Many | | | | risk-management solutions and this opens a door of |
| solutions are designed specifically for financial services | | | | opportunity for CIOs to help out the business. |
| firms (this is where this type of application was born | | | | There are many different types of risk-management |
| after all). However, there are a number of solutions | | | | solutions and a CIO can help with the selection |
| that allow firms to monitor operational risks in their | | | | process. The system needs company data in order |
| non-financial industry. | | | | to operate correctly and where that data will come |
| How To Use A Risk-Management Solution | | | | from (and how frequently) is something that the CIO |
| The way that a risk-management system works is | | | | will need to determine. |
| by collecting information from other systems and | | | | Opportunities to use IT to help out the entire |
| then processing it. The CIO is going to play a big role | | | | company like this don't come along often enough. |
| in making sure that the needed data is both | | | | CIOs need to size this moment and use it to once |
| accessible and available in a timely manner. Depending | | | | again show the value of the IT department to the |
| on the type of data, the risk-management system | | | | rest of the company. |