3gamma Insights: Creating a solid foundation through cost-effective risk

management

Ideas in brief

Jens Ekberg, Director Head of Group Insights

2

Embedding risk management within IT to deliver

business value while maintaining compliance

IT organisations are subject to a wide range of rules and regulations that mandate control over information, technology and processes. This drives significant costs and undermines the ability to deliver on already stretched targets.

Regardless of good intent, external rules tend to be interpreted overzealously and become over-engineered. Companies should include internal control in

all initiatives and not view it as discrete a one-off event

Insight and transparency enable decision-making, evaluation and acceptance of risk-levels. The risk management process needs to be embedded in the transformation initiative and not run in parallel

Companies should approach implementation through an iterative approach

and continuously improve. This approach will reduce cost, allow for better allocation of scarce IT resources and ultimately lay the foundation for more effective IT delivery processes.

3gamma Insights: Idea in brief

3

The commitment risk – When IT outsourcing

exposes shadow processes and loyal heroes

Shadow processes are often an integral part of IT delivery. Without them the quality of the IT services would deteriorate. But what happens with these shadow processes in an outsourcing project?

Loyal and committed people are at the heart of a high-performing IT organisation. In big changes, such as IT outsourcing, this commitment may become a significant risk

Due diligence processes seldom reveal shadow processes and activities. For vendors, it’s easy to make a very attractive offer. Outsourcers need to pay meticulous attention to this and implement countermeasures in the planning and preparation phases

The process of scoping services needs to be based on relevant hard data. The key to a successful IT sourcing initiative is a clear understanding of the baseline. It is needed to establish a realistic business case and managing the transition project with care

Shadow processes can be mitigated if loyal heroes are made aware of the importance of documentation and process-orientation

3gamma Insights: Idea in brief

4

Staying in control over an outsourced delivery

An outsourced delivery of a function, process or portion of work can be an attractive solution for many reasons. There are benefits to be gained but also risks involved that need to be proactively managed.

Both informal and formal governance are needed to manage IT outsourcing risks during the outsourcing life-cycle

Organisations should use an inclusive, holistic approach to ensure that different organisational needs are met and requisite stakeholders are involved

Proactive measures for early risk management are key to IT outsourcing success

By realising that an outsourcing agreement is an ongoing and changing relationship and by working proactively with stakeholders, an organisation can

proactively manage risks that may occur due to the loss of control. Such measures are imperative in securing the success of an outsourced delivery

Contact: Tove Flodgren-Isaksson, Managing Director at Fondia Sweden

3gamma Insights: Guest point of view by Fondia

5

Using governance, risk and compliance (GRC)

systems to deliver business benefits

Outdated and hard to maintain spreadsheets are piling up and the business is left without proper control.

Organisations need an efficient and effective way of maintaining control. GRC systems provide an integrated view of the governance, risk and compliance related to business processes

It enables a move from fragmented data collection to asking critical questions

once, hence reducing impact on business

It reduces cost and complexity while increasing the likelihood of effective and efficient collaboration

It replaces overlapping reporting with integrated reporting

Being able to manage GRC challenges in a transparent and cost-effective way

while avoiding bureaucracy, process lock-down can become a competitive advantage.

Contact: Alex Hofmann, GRC Technology Service Leader at Transcendent Group

3gamma Insights: Guest point of view by Transcendent Group

6

Risky business! There's a time for playing it safe

and a time for risky business

Embedding risk management as an integral part of the project framework is an essential and fundamental part of any project, programme or portfolio as a way of keeping costs down, benefits high, and increasing the probability of successful delivery

The ability to effectively manage project risks is in direct correlation with tangible business benefits: fewer delays, cost-overruns and improved return

on investment

Classifying risks and understanding their potential impact is key to devising the right risk management strategy

Project managers need several tools for risk management across the project life-cycle

Proper risk management reduces the number of risks that materialise and

minimises the effect of those that do occur. To secure successful delivery, risk must be appropriately managed. Risk management also results in more opportunities being captured proactively and turned into positive benefits for the project

3gamma Insights: Idea in briefRisk and cost correlation of the project life-cycle

Risk management strategies need to be adapted to business needs