Integrated Risk Management (IRM) is a comprehensive approach to managing risk within an organization. It involves a set of proactive practices and processes supported by a risk-aware culture and enabling technologies, aimed at improving decision-making and performance through an integrated view of how well an organization manages its unique set of risks.
IRM focuses on evaluating risks in the wider context of business strategy, as opposed to compliance-based risk management approaches. It includes a clear strategy, detailed risk assessment, a plan for risk response, communication and reporting, risk monitoring, and the implementation of IRM software.
The goal of IRM is to provide a comprehensive view across all business units, risk and compliance functions, as well as key business partners, suppliers, and outsourced entities. By doing so, organizations can better understand the full scope of risk and make more informed decisions related to cybersecurity and IT administration.
IRM is important because it helps organizations understand risk as a metric to make more appropriate organizational decisions related to cybersecurity, and it provides a framework for assessing vulnerabilities in complex systems.
In summary, Integrated Risk Management is a strategic and collaborative approach that aims to improve an organizations risk visibility and decision-making process, ultimately helping it not just survive, but thrive on risk.
