Optimizing Business Resilience Strategies for Non-Financial Risks

This white paper outlines effective strategies for consolidating Non-Financial Risks (NFRs) within organizations. It begins by discussing the significance of NFRs, such as operational, artificial intelligence, ESG, and third-party risks, particularly in the context of a volatile business environment. The document emphasizes the need for a comprehensive management approach to address the complexities of NFRs, including establishing a robust governance structure, understanding individual risks and their interconnections, and implementing effective data collection and reporting tools. The paper introduces the Non-Financial Risk Management (NFRM) framework developed by Protiviti, which translates core principles from established standards into actionable components. It details a structured five-step approach to leverage this framework, including establishing governance, creating a risk taxonomy, and implementing it across the organization. The goal is to enhance strategic decision-making and reinforce risk management practices, ensuring organizations can maintain resilience and achieve long-term success amidst evolving challenges.