Embedding digital risk management

Who is ultimately responsible for digital risk?

This is the question that many leaders are asking – both of themselves and of the wider organisation. The easy answer is that it’s everyone’s responsibility – everyone needs to be aware of the risks and understand what process to follow in response.

However, the more nuanced answer is that marketers stand on the front line of customer engagement, creating the digital assets and campaigns that reach into people’s lives. This means that they are more likely to become aware of risks and vulnerabilities before others across the wider organisation.

In this digital first age, it is impossible to detach the performance of online channels from risk. A few years ago, we began seeing a change in the marketplace, with blue chips handing full control of digital risk to their marketing functions.

From 2017, some financial services organisations began to appoint heads of risk management for marketing and communications, with the aim to assess, mitigate and eliminate future risks in marketing.
 

A question of empowerment
 

When asked where the responsibilities for digital risk lie, many organisations still do not have a clear order of command. This, despite the fact that crisis PR and crisis management following a digital breach or incident can fall into the remit of the marketing department.

Chief Marketing Officers (CMOs) need to work closely with other C-Suites on digital risk to achieve a unified response. However, research shows that the majority of marketers only feel partly aligned with their CEO (46%), with one in ten not feeling aligned at all.

Risk needs to become a meaningful part of the conversation at senior level. This isn’t just because of the possible impact on the organisation but because risk preparedness should be built into marketing budgets from the outset. Organisations need to invest in the tools and expertise that mitigate digital risk – at a time when average marketing budgets are falling.
 

Success is where preparation and opportunity meet
 

When we ask CMOs about their appetite for risk, we often find that there is a disconnect between the risks present in their digital model versus the amount of risk they are prepared for. Too often, CMOs realise this after a vulnerability has come to light.

By building digital risk strategy into the organisation early on, and letting everyone in the organisation know they have a role to play, this risk is significantly reduced.

Proactive risk management is always preferable to reactive. You want to know when issues are coming down the pipe, and prepare a response, rather than having to make snap decisions, potentially while under considerable scrutiny.

With the right tools in place, this level of preparedness is not an arduous task – it’s a question of automation and reporting. With the right support and technology, you can still pursue your digital goals at pace.
 

Communication is key
 

Marketing teams often operate in siloes, but to foster a unified approach to digital risk, it is important that teams communicate and share learnings. The beauty of a fully embedded risk strategy is that the whole organisation acts and reacts in harmony, saving both time and resource.

The benefits to cross-departmental communication are manifold. Everyone across the organisation will have a better understanding of the risks and opportunities and will have the chance to feed into strategy, suggesting different approaches for different markets or channels. Individuals and teams will also be better prepared for internal conversations with the risk team – during an internal audit, for example.

By fostering teamwork and harmonising approaches from the outset, everyone will be empowered to tackle digital risk. “That’s not my job”, or “not my department” won’t slow down your organisation in the event of a crisis because digital risk will be established as a core part of everyone’s role.
 

Best in class
 

Every CMO works tirelessly to elevate the reputation and sales of their organisation. These individuals and their best-in-class businesses deserve a digital risk strategy that helps safeguard both.

Deloitte has spent years consolidating learnings from a wide range of industries. We know that whatever your route to compliance, other businesses are facing the same challenges and asking the same questions about digital risk. It’s about leveraging that knowledge base to achieve scalable and innovative digital transformation. We work with our clients to understand, enhance and tune their digital marketing operating models to proactively manage risk and drive success. Get in touch to find out more.