8MAY 2022I recently had the opportunity to be part of a series of panel discussions related to the management of risks within the realm of the new digital reality in which we find ourselves. Some of the questions posed were very interesting to stop and think through."How has digital transformation changed the role of risk management?" I started my career in the data processing arena - long before it became known at Information Technology. So, this transformation to a digital era has not necessarily caught me by surprise. As I stepped back to think about it, as well as the reality we are facing, I was amazed at how quickly this new digital reality has come upon us. I truly believe that the digital transformation is making nearly every risk professional pause and ponder how technology has become so pervasive ­ both from a business and a personal perspective. My answer to the question at the beginning of this paragraph would have to be that digital transformation is influencing every area of risk management, which in turn must guide leaders in the various risk arenas to work collaboratively, with respectful challenge in order to identify, develop, implement, and maintain the most effective controls.Risks are coming at us from everywhere. "Where do you see the most pervasive risks at the moment?" As I am a firm believer in leading versus managing and teamwork versus only individual contributions, I feel that the biggest risk any organization may be facing today is "Be the smartest person in the room." I consider this ideology to be poison and will not likely facilitate a culture that will effectively manage digital transformation risks, or any other risks for that matter. Collaboration is no longer just a wonderful idea...it is a necessity if we are going to truly be able to manage the risks that we face today, as well as the risks of tomorrow."Have we thought about from where the next generation of risks may coming?" This is a very interesting question to stop and contemplate. Does anyone have a crystal ball from which they can see into the future? I don't. But, given the previous point about collaboration, I am a believer that we can accomplish more together than any one of us can individually! Technology dependence is certainly a risk that is right in front of our faces, which means that the digital transformations we're experiencing today will grow and be more prevalent tomorrow. We don't yet know the extent to which technology will cause or impact risks, or even to which we'll be able to enable proper, effective controls.OPINIONIN MYBy Dan Bailey, SVP, Operational Risk Management, Gateway First BankMANAGING RISKS THROUGH A TRANSFORMATION TO THE DIGITAL ERA
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