You Can’t Manage Risk Without IG
“Risk doesn’t mean danger—it just means not knowing what the future holds. That insight resides at the core of risk management for companies, whether in managing the potential downside of an investment or putting a value on the option of waiting when making irreversible decisions.”
McKinsey Quarterly, “Peter L. Bernstein on Risk”[1. McKinsey Quarterly, “Peter L. Bernstein on Risk,” January 2008.]
IN BRIEF. Organizations need to do a better job of identifying and managing risk. The risk of information management failures is a critical risk that IG helps to mitigate.
Organizations cannot get an accurate picture of their enterprise risk without including IG in that calculation. The cost of information management failures has grown in recent years, and is only growing as regulation and scrutiny in this area intensifies. The widespread failure of financial institutions to adequately quantify and mange risk is seen by many to be a major contributor to the current economic downturn.
In fact, the Shareholder Bill of Rights Act of 2009, a new law currently in Committee in the US Congress states that, “both executive management and boards of directors have failed in their most basic duties, including to . . . appropriately analyze and oversee enterprise risk.”
The way that information is managed can be the difference between winning and losing in litigation. It can dramatically affect the outcome of regulatory investigations. It contributes significantly to the success of mergers and acquisitions. IG needs to be part of every organization’s strategy to measure and mitigate enterprise risk.