Integrated Risk Management (IRM): A Holistic Approach to Sustainable Business Security

Closely aligning all areas of governance, risk, and compliance (GRC) helps companies stay on top of risks, meet regulations, and build long-term resilience. With Integrated Risk Management (IRM), these processes come together on one central platform – making them easier to manage, more efficient, and scalable as your business grows.

Table of contents

What is Integrated Risk Management (IRM)?
What Areas Does Integrated Risk Management Include?
What Are the Components of Integrated Risk Management?
What Are the Benefits of Integrated Risk Management?
Who Is Integrated Risk Management for and What Happens Without?
What Are Common Challenges in Implementing IRM?
Best Practices for Integrated Risk Management
What Features Should the Ideal IRM Software have?

Author
Philipp Strokosch

What is Integrated Risk Management (IRM)?

To understand what Integrated Risk Management (IRM) is, it’s helpful to know what it’s not and how it differs from less modern practices.

Traditional risk management often works in silos – each department handling risks separately, which can lead to blind spots and inefficiencies. This fragmented approach makes it difficult to see the full risk landscape and as a result, businesses may struggle to anticipate threats, respond adequately, or stay compliant with changing policies and regulations.

In contrast, IRM uses a different strategy by bringing governance, risk, and compliance (GRC) together on one, unified platform. It’s commonly underpinned by a structured risk management framework (RMF) that combines different risk management activities and helps organizations identify, assess, and mitigate risks across all business areas.

Whether it's cybersecurity threats, financial uncertainties, or operational disruptions, a strong IRM enables businesses to manage risks comprehensively and focus on strategic objectives and growth.

What Areas Does Integrated Risk Management Include?

Integrated risk management takes into account that risks usually don’t occur in isolation but are often interdependent and thus part of a larger context. For this reason, it makes sense to view risk management as a multidisciplinary task and to link key GRC areas such as enterprise risk, internal control, business continuity, internal audit, data protection, information security, and compliance. This way, risks can always be assessed in their full context, allowing for more effective and efficient management.

Today, this approach also includes sustainability and ESG management, which are becoming increasingly important worldwide due to growing environmental awareness, green initiatives, and a stronger focus on corporate social responsibility. By taking this integrated perspective, companies not only enhance their resilience but also build a strong risk culture that runs through all business areas.

What Are the Components of Integrated Risk Management?

Regardless of what kind of risks we’re talking about – whether enterprise, privacy, information security, process, or sustainability risks – integrated risk management is a full-circle approach that includes all stages of the risk management lifecycle, from devising a comprehensive risk strategy to ongoing improvements:

Risk Planning & Strategy

Building a risk management framework that aligns with business objectives, regulatory requirements, and industry best practices. Ideally, clear roles and responsibilities are assigned from the start to ensure smooth risk handling.

Risk Identification & Assessment

Identifying potential risks across all business areas and assessing their likelihood and impact. Assessment methods can be either qualitative or quantitative, using simulations and data projections.

Risk Response & Mitigation

Developing and implementing proactive and tailored strategies to avoid, reduce, transfer, or accept risks. Potential measures may include process changes, security controls, or contingency plans to minimize exposure.

Monitoring & Control

Using real-time data, risk tracking techniques, and regular audits to detect changes in risk levels. This way, organizations can achieve compliance with evolving regulations and address threats before they turn into events.

Incident Management

Having a clear protocol in place for responding to risk-related incidents. The goal is to be able to take quick action to contain and resolve incidents so that business disruptions and financial or reputational damage are avoided.

Documentation & Reporting

Maintaining a centralized repository to document risks, actions taken, and the effectiveness of measures. Transparent reporting, including key metrics and lessons learned, helps improve future risk strategies.

What Are the Benefits of Integrated Risk Management?

Organizations that implement Integrated Risk Management (IRM) experience a whole host of advantages. To highlight the most important ones, here’s a condensed list of the primary benefits companies can expect:

Increased Efficiency
Centralized data management and synchronized, automated workflows reduce manual effort and greatly facilitate the detection, evaluation, and handling of risks.
Enhanced Decision-Making
Transparent reporting and real-time insights across various risk areas provide management with a solid foundation to make informed, strategic decisions.
Improved Compliance
The integrated audit function, supported by a reliable audit trail, ensures that risk processes stay aligned with regulatory requirements and simplifies compliance monitoring and reporting.
Optimized Spending
Having all risk areas integrated into one management solution enhances collaboration, reduces redundancies, and significantly lowers operational expenses.
Holistic View of Risks
Acting as a single source of truth with accurate, up-to-date data, a unified, integrated risk management solution eliminates silos and offers comprehensive risk oversight for the entire organization.

For the future, we aim to expand our GRC solution to include additional domains, moving towards an integrated GRC approach. BIC enables this through the individual extendability to incorporate more processes.

Martin Gratz Global Risk Manager Business Sector Mobile Security, Giesecke+Devrient

Who Is Integrated Risk Management for and What Happens Without?

In general, the larger an organization, the more global its operations, and the more complex its supply chain, the more important it is to have a well-integrated risk management solution as it helps close blind spots, uncover hidden risks, and provide a clear picture of the overall risk portfolio. This is especially true for medium-sized and large enterprises, where risks are widespread and multifaceted. Industries such as finance, energy, healthcare, and other critical sectors that are considered essential to society face particularly strict regulations, making a strong risk management framework not just beneficial but legally required. Without such a framework, businesses expose themselves to serious consequences:

Financial Losses

Cyberattacks, supply chain disruptions, or regulatory fines can quickly accumulate into significant and far-reaching business threats with potentially cascading effects. If such risks are insufficiently managed, poorly assessed, or left unattended, severe financial setbacks may be the result, including costly crisis management and even long-term operational instability.

Reputational Damage

Data breaches, environmental violations, or ethical missteps – if ignored or left unnoticed – can spiral out of control much faster than any business would be able to keep up. Without a quick and effective response through integrated risk management, these risks can escalate into full-blown crises, hurt your reputation, and ultimately cost you the hard-earned trust of customers and investors.

Regulatory Penalties

In the EU, regulations like NIS2, DORA, and CSRD are a hot topic – and for many businesses, compliance isn’t optional. Besides these major regulations, there are countless other policies and legal requirements to keep track of. Failing to properly document, assess, and manage compliance risks can have serious financial repercussions and lead to heightened regulatory scrutiny and other legal consequences.

Operational Disruptions

Organizations that don’t have a comprehensive and integrated risk approach often lack the agility and resiience needed to respond quickly to crisis events. Amongst other things, this can lead to supply chain issues, lower productivity, or – in the worst case – severe disruptions to core business processes, which may even put overall business continuity into jeopardy.

What Are Common Challenges in Implementing IRM?

Lack of Executive Sponsorship
For integrated risk management to be successful, leadership must be fully on board and committed to long-term IRM adoption. Without their support, risk management may lack the necessary budget and staff, risk and business goals may not align properly, and a weak risk culture could take hold within the organization.
Unrealistic Expectations
Integrated risk management shouldn’t be seen as a quick fix for all problems of an organization, as this could lead to disappointment and frustration. Instead, it’s an ongoing process that requires continuous monitoring and adjustment to deliver long-term benefits.
Unclear Data Ownership
If it's unclear who or which teams are responsible for certain risks or processes, data can become inconsistent, unreliable, or even overlooked. As a result, risk-related data may not be updated accurately, potentially leading to security issues for the organization and its employees, as well as hindering critical decision-making processes.
Regulatory Complexity
As new regulations emerge and compliance requirements tighten across countries and industries, the compliance landscape for businesses is becoming increasingly complex. That’s why it’s important for organizations to stay informed and closely monitor regulatory changes so they can adjust their risk management strategies if needed.
Market Confusion
The wide range of risk management solutions available on the market makes choosing the right one challenging. Businesses must carefully evaluate their organizational structure, compare features, and, in particular, consider scalability to ensure they invest in a solution that truly fits and evolves with their needs without costly overhauls.

Best Practices for Integrated Risk Management

Promote a risk-aware culture ...

by providing training for employees and encouraging them to recognize, report, and help mitigate risks in their daily work.

Develop clear policies and procedures ...

by defining roles, responsibilities, and structured risk processes for consistency and accountability.

Align risk management with business objectives ...

to support growth, stability, and long-term success while strengthening corporate governance and business operations.

Improve reporting and communication ...

by providing stakeholders with accurate, up-to-date risk data for more transparency and better decision-making.

Engage key decision-makers ...

by fostering collaboration between departments and promoting a unified, cross-functional risk approach.

Prioritize and automate key risk areas ...

using integrated software solutions to streamline workflows and efficiently manage risks across the organization.

What Features Should the Ideal IRM Software have?

To select the right IRM solution, you’ll have to carefully evaluate how well it aligns with your business needs and integrates with your existing systems. The ideal IRM platform should offer essential GRC features such as risk analysis and treatment, auditing tools, internal control mechanisms, compliance databases, and reporting capabilities. Another key requirement is that it facilitates collaboration across teams and departments, ensuring risk data can be easily shared and mitigation strategies properly aligned.

Additionally, you should ask yourself the following questions:

Is the solution adaptable?
(e.g., smooth integrability with existing systems)
Does it have the right features?
(e.g., qualitative and quantitative risk analysis, dashboarding, reporting, etc.)
Is it easy to use?
(e.g., intuitive interface, stakeholder accessibility, workflow support, automated notifications, etc.)
Is it cost-effective?
(e.g., price alignment with the value provided)
Can it scale with my business?
(e.g., adaptability to evolving needs and future risks)
Does it support collaboration?
(e.g., convenient data sharing across teams and risk areas)
Does it align with my business strategy?
(e.g., long-term goals and compliance requirements)

Integrated Risk Management with BIC GRC

BIC GRC is a single-source platform that brings all your risk management needs together in one powerful solution. It covers all key areas, including enterprise risk, internal controls, information security, compliance, business continuity, auditing, and more. With an intuitive interface, smart automation, and real-time insights, BIC GRC helps you address risks proactively, build resilience, and continuously enhance your GRC maturity.

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About the Expert

Philipp Strokosch

Head of Product Line GRC & Managing Director GBTEC Austria

Since July 2024, Philipp Strokosch has been the Head of Product Line GRC and Managing Director at GBTEC. Before that, he led the development of innovative Governance, Risk, and Compliance (GRC) solutions as Head of Sales, helping businesses prepare for the future through digital transformation. With over a decade of experience, including serving as Country Manager for a Fortune 500 risk management company listed on the New York Stock Exchange, Philipp is a recognized expert in sustainable risk management. Together with his team, he creates customized solutions that drive long-term success and ensure regulatory compliance.

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