When risk management loses its connection to the business

Risk management is not about compliance.

May 7, 2025

Many organizations spend time and effort building GRC frameworks and processes - but still find that it doesn't make a significant difference.

Why is that?

Because solutions are often developed in the security team or compliance department without real involvement from the business. And outside the business, it becomes difficult to create meaning and value.

 

Too often, work focuses on control and documentation instead of answering the most fundamental question: What can threaten our ability to achieve business goals?

 

Risk is about goal achievement - not just controls

A risk assessment should not just list possible incidents, but be directly related to the objectives the organization is trying to achieve. When this doesn't happen, the work loses its direction. An IT system itself is not at risk - but the activities and goals that depend on it are.

 

The lack of business understanding leads to out-of-context assessments and reporting that cannot be translated into action. It becomes difficult to answer simple questions like: What is the real impact if the system fails? And who will be affected?

 

Risks are relevant when they are linked to specific organizational objectives such as growth, efficiency, compliance, customer satisfaction, digitalization, sustainability or employee satisfaction. For example:

 

Strategic objective

- Invest in new technology and capture +20% market share

Strategic risks

- Failed investments in new technology - the solution doesn't match the needs and is never fully implemented.

- Failure to adapt to the market - overtaking competitors due to faster innovation.

Operational risks

- Key employees quit - knowledge and capacity suddenly disappear.

- Repeated system crashes - key tools are unstable, making operations unstable and customers switch to competitors.

Information security risks

- Data breaches - customer or employee data compromised, leading to loss of trust and fines, etc.

 

Complex solutions rarely solve real problems

There is a tendency for technical and professional complexity to take over. The result is heavy frameworks and tools that are hard to use - and even harder to explain. When the business doesn't recognize itself in the solution, it loses interest. And then the work becomes isolated in a small group with no influence.

 

When the goal is clear, so is the risk.

A lot of risk workshops are held around the country. Many go off the rails. Often this is because the assessment is linked to an IT system or process, but not to a purpose that supports the organization's objectives.

A shift in approach can make all the difference:

- What is the purpose of this IT tool or activity? Is it new technology?

- How does it contribute to the organization's goals? Is it helping to increase market share?

- What does it mean for us if the IT tool doesn't work as intended?

- What is the risk of not reaching our target of 20% growth in market share? This is exactly the risk that top management is asking for.

 

More simplicity. More impact.

GRC only delivers value when it creates insights that can be used in everyday life - by management, by the business and by those who have to act on the risk.

It requires a willingness to clean up, simplify and think from the business perspective. Not instead of professionalism, but as a foundation for using it right.

 

Risk management is not an exercise in documentation. It's a way to protect business progress and goal achievement. When successful, it becomes a management tool - not just a compliance requirement.

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