Transformations іn the Global Risk Landscape: Considerations for Strategic Risk Management System Development

Abstract

The dynamic evolution of the global risk landscape necessitates a re-evaluation of traditional risk management frameworks to address the growing complexity and interconnectedness of modern threats. This study examines the transformations in global risks over recent years, highlighting trends such as the convergence of environmental and technological risks and the increasing significance of health crises, economic instability, and misinformation. Utilizing insights from global risk reports (2018–2024), the study identifies short-term risks driven by immediate socio-economic impacts and long-term risks with broader strategic implications, such as climate change and biodiversity loss. The research synthesizes key risk management frameworks, including COSO ERM, Balanced Scorecard (BSC), Prevent-Detect-Correct (PDC), Risk-Based Decision-Making (RBD), Risk Matrix, NIST, ISO 31000, and COBIT. Each framework’s adaptability, scope, and applicability across diverse organizational needs are analyzed. While COSO ERM and BSC align risk management with strategic goals, PDC and RBD emphasize proactive and data-driven approaches. The Risk Matrix simplifies prioritization, whereas NIST and COBIT provide robust methodologies for IT and cybersecurity risks. ISO 31000 emerges as the most versatile, offering a flexible, principle-driven approach to managing risks across industries. Special emphasis is placed on utilizing these systems for managing financial risks and safeguarding the financial security of enterprises. Findings underscore the necessity of integrating risk management into strategic decision-making to enhance resilience and proactive preparedness. Organizations must select tailored frameworks that align with their unique risk profiles, regulatory environments, and strategic objectives. This study contributes to the discourse on strategic risk management, providing actionable insights for organizations navigating the complexities of a rapidly evolving risk environment.