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EnglishGlobal crises, volatile markets, and geopolitical tensions always bring uncertainty for businesses. Additionally, the bigger and more international a company is, the more exposed it becomes to risks. In times of economic crisis, professional risk management is more crucial than ever to protect financial stability, build resilience, and secure long-term success.
Table of Contents
Author
Philipp Strokosch
The past few years have clearly shown how vulnerable businesses can be during periods of geopolitical turbulence or upheaval. Political tensions, fragile supply chains, and fluctuating financial markets can shake entire industries. And when a crisis escalates into a full-blown recession, tough steps like restructuring or layoffs often seem unavoidable. The harsh truth: the very survival of a company can suddenly be on the line.
When so many economic risks hit at once, it’s obvious: companies need clear, practical, and long-lasting strategies to handle uncertainty. That’s exactly what professional risk management is for.
However, the opposite often happens. When the economy gets shaky, budgets are usually the first thing to get cut. Sure, saving money can be smart in some areas – but cutting costs blindly, without thinking about the long-term impact, can backfire massively and cause more problems later. Often, short-term savings just lead to higher costs down the road.
Cutting back on risk management is especially risky. This is the very system that helps businesses get through a crisis in the first place. Companies with solid risk management processes are not just better prepared but can also react faster and more effectively when challenges hit.
Risk management isn’t only about being responsible or thinking ahead. Depending on your industry, company size, location, and what products and services you sell or offer, there are often strict legal rules to comply with. Ignoring these rules can lead to hefty fines, which can easily be avoided with proper preparation. In some cases, company leaders can even be held personally liable, both civilly and criminally, if the rules aren’t followed.
Companies must systematically identify risks throughout their supply chains and take action to prevent human rights abuses or environmental damage.
This CSRD directive requires affected entities to provide comprehensive and standardized reporting on ESG (Environmental, Social, Governance) risks and opportunities.
Businesses operating in critical sectors like energy, transport, healthcare, digital services, and others must establish extensive cyber and IT risk management and follow specific reporting and response steps in case of incidents. (regarding the NIS2 white paper)
From January 2025, banks, insurers, and ICT service providers in the financial sector must demonstrate their operational resilience against IT and cyber risks.
Insurance companies must calculate their capital requirements from a risk-based perspective, including assessing, managing, and monitoring their risk exposure.
As the world’s first comprehensive legal framework for artificial intelligence, this law requires companies to systematically analyze and monitor their AI systems according to risk levels, especially for high-risk applications and use cases.
In tough economic times, strategic and proactive risk management becomes more important than ever as it helps you stay protected and able to act. Here’s how to tackle it in five practical steps:
Tip: Keep this overview complete and up to date as risks change fast!
Tip: Test your measures regularly to make sure they actually work when needed.
Tip: Plan regular audits (e.g., system, process, product, or compliance audits) to catch negative developments early and find ways to improve.
Tip: Build risk awareness throughout your company and make sure everyone is well trained, so they know what to do and when to do it.
Tip: If possible, use quantitative assessment methods such as stochastic simulations, and align the results with your company’s risk appetite and capacity. This makes decisions easier to compare and justify.
Risk management is still partly handled today using manual spreadsheets like Excel. But given the complex and dynamic threats organizations face, this approach is not only inefficient but also extremely negligent. To manage risks professionally, you need a reliable, integrated system that grows with your business and adapts to your needs.
Here’s a simple step-by-step guide to help you implement an effective risk management system:
Identify your needs and set clear goals
Think about which types of risks you need to manage (e.g., general business risks, ESG risks, IT risks, process risks, business continuity risks, or data protection risks). Define what you want to achieve by managing these risks and keep any relevant legal or regulatory requirements in mind from the start.
Analyze your current situation
Take a close look at where your risk management stands today. Which processes, structures, and responsibilities are already in place? What is the current level of protection? Where are the gaps, and what needs to be improved or added?
Build risk awareness across your company
A good system is only as strong as the people behind it. Create a shared risk culture by making sure everyone understands potential risks, knows how to report them, and sees how they can help minimize them – even if they don’t work directly in risk management.
Choose the right tool – carefully
Do your homework and compare the GRC software options on the market. Pick a solution that covers all your key requirements regarding use cases and functionality (e.g., automated workflows and notifications, risk simulation, role-based access rights, clear dashboards, interfaces to other systems, audit and reporting capabilities, etc.).
Test it out with a Proof of Concept (PoC)
Run a test phase with real-life scenarios to see if the software really works for your organization in practice and spot any issues before full implementation.
Roll it out – and keep it improving
Plan your rollout carefully and involve all relevant teams from day one. Most providers offer good, comprehensive implementation support to help you get started quickly. And remember: risk management is not a one-time task. Set up processes early to regularly review and continuously improve your system.
With the BIC GRC risk management platform, you’re not just prepared to get through a crisis – you’re set up to come out even stronger. Its modular design lets you manageall your risk areas – from enterprise risk and IT security to ESG and compliance – in one central system. This means you can protect your finances, secure your supply chains, and keep your business processes resilient and ready for the future.
Whether you’re a growing mid-sized company or a large enterprise, BIC GRC helps you build strong, stable processes – so you can stay on course with confidence, no matter how tough things get.
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.