Mumbai: 66% financial investment firm managers want risk management to be a strategic business function and one which is embedded deeply into the fabric of their organization, according to a research undertaken by the IBM India Research Laboratory.
Unfortunately, less than 45% of software companies surveyed have ever conducted a company-wide risk assessment or have a sound continuity of operations plan in place.
“Businesses and governments today require capabilities across all three phases of crisis: readiness, response and recovery,” he said, adding organizations face a growing number of threats from natural and man-made disasters or disruptive events that have costly, far-reaching impact.
“Business leaders are faced with the challenge of keeping their enterprise running and growing, no matter what. Failure to deal with risk, stay agile and prepare plan for business continuity can have disastrous consequences on operations, revenue and even the company’s brand,” he said.
The index could also be applied to other sectors such as manufacturing units and business establishments.
IBM is now working with the Software Engineering Institute (SEI) at the Carnegie-Mellon University (CMU) to incorporate parts of the assessment framework into an industry standard.
In a related effort, IBM also has developed a ‘Skills Planning´ model for optimal allocation of jobs across an organization to minimize the impact of a disaster at any one site.