July, 20228 IN MYV EWBY ERIC BONNELL, SENIOR VICE PRESIDENT, TECHNOLOGY RISK, ATLANTIC UNION BANKMartial artists train to increase their skills (i.e., controls) while constantly assessing their environment to understand threats (i.e., likelihood and scope of impact of a likely attack). In essence, this describes the basics of a company's Enterprise Risk program.It follows that the business can learn from the discipline and principles of the martial arts when building, operating, maintaining, and improving their Enterprise Risk program. Below are some well-known quotes from the martial arts that represent seven basic principles for establishing and running a truly transparent and effective Risk Management program.Principle #1: "There are few people who will make mistakes with fire after having once been burned." - Yamamoto TsunetomoManaging risk becomes easier with experience. Historical knowledge, while not guaranteed to guard against all risk, can surely bring wisdom to an organization. It is unfortunate that the business often suffers a significantly negative challenge before it begins to take Risk Management seriously. Don't wait to assess and manage your risks! This principle is basic but emphatically essential to successful risk management.Principle #2: "If you want to be a lion, you must train with lions" - Carlson GracieThere are benefits to establishing controls and complying with regulatory requirements. These are designed to stop bad things from happening. However, blindly establishing controls without understanding the intent or interdependencies of controls may lead to process over engineering or gaps. Bring experienced talent into your organization to guide you through the process of under standing the goals, assets, processes, and risks. Strive to see the big picture and guide your teams to design and implement risk-based complementary controls to promote safety and efficiency. This is the principle of dedication.ENTERPRISE RISK MANAGEMENT AND THE PRINCIPLES OF THE MARTIAL ARTS
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