'Anything that can go wrong will go wrong.'

The infamous Murphy’s Law seems to be applicable for a lot of occasions, from other queues moving faster (no matter how many times you change) to typos that become noticeable only after an email is sent. Whether it’s a mere superstition or aphorism, such a pessimistic way of thinking can actually be useful for your business development. In risk management, it’s important to think about things that can go wrong so that you could prevent them from happening in the first place. As we soon enter 2022, risk management is more important than ever.

Risk Management for 2022: What to do?

According to Tech Target, risk management should cover strategic management errors, legal liabilities, human error, natural disaster, and digital threats. If you’re a leader, manager, or owner of a business, you must be familiar with these risks. But these types of risks are general categories. To prepare for 2022, institution leaders must manage specific risks that may appear in that year. Carley Taslov from Schneider Downs has compiled the top 12 risks that organizations will face in 2022. In the article, cybersecurity, talent management, and organizational governance are the top three risk aspects that corporations have to be prepared for.

In risk management, there are necessary steps that a board has to take. Tech Target summarizes these steps as the following: (1) Establishing context of potential threats, (2) Identifying and defining risks, (3) Analyzing risks, (4) Evaluating risks (according to a company’s risk appetite), (5) Mitigating risks, (6) Monitoring risks, and (7) Communicating the risks with stakeholders. In each step of risk management, a company’s board needs to make the right decisions. And to help this decision-making process, there’s nothing more useful than data.

The Importance of Data in Risk Management for 2022

Data holds an important role to give leaders insights on what threats are lurking and what possible actions can be taken. Here are several reasons why data is important for your 2022 risk management.

1. Black swan events 

Roger Stewart from IOA notes the importance of considering black swan events when managing risks. Simply put, black swan events are irregular and unexpected incidents that can significantly disrupt business operations due to the immense consequences that follow them. Events such as the Covid-19 outbreak, for instance, is an example of this. Businesses should take these possibilities into account when planning risk management in 2022, as unknown incidents may occur anytime. Here, data could serve as guidelines in the middle of chaos.

2. Increasing number of threats 

Cybersecurity is an issue that becomes more important, especially as online traffic increases. In fact, as mentioned above, cybersecurity was noted as the top priority that businesses should pay attention to for risk management in 2022. Data management processes, particularly big data analytics, can be a great tool for institutions to strengthen their security protocols. Platforms such as MSIGHT provides businesses with customer insights which can be used to improve security measures.

3. A catalogue of insights

Last but not least, data can be compiled as a catalogue of insights about limits and mistakes. Data can provide information about limitations that confine your operations. At the same time, these info on limitations also give you insights about what your organization is capable of. In addition, data can also give you information on past mistakes – not only the ones made by your businesses, but also the ones made by your competitors. By learning from past mistakes presented in forms of data, there can be more effective risk management.

Risk Management Made Easy

We understand that risk management for 2022 can be overwhelming. There are a lot of things to consider, and it can be confusing at times. And gaining insights for risk management isn’t always easy. Luckily, a great tool such as Telkomsel’s MSIGHT can help you gather data so that you can manage risks better. In risk management, insight from customers is an aspect that is important yet frequently overlooked. Telkomsel’s MSIGHT presents an API Big Data Catalog that can be adjusted to your company’s needs, providing insights that can be used to manage risks more effectively and more accurately.