Risk & Strategy
Meghan Day Image
Meghan Day
Principal Solution Designer

Risk insights at directors' fingertips: How the Diligent & Moody's partnership transforms decision-making

May 17, 2024
0 min read
Risk professionals discovering Diligent and Moody's ERM dashboard to help chief risk officers, chief financial officers, general counsels and other risk professionals monitor critical risk factors, aggregate findings and present a clear and comprehensive report to the board.

In today's volatile business environment, board directors are increasingly under pressure to navigate complex risk landscapes effectively. The stakes are high, as the cost of mismanagement can lead to severe consequences, including hefty fines, leadership shakeups, irreversible reputational damage and personal liability for directors. One of the critical challenges directors face is making strategic decisions without access to comprehensive and reliable risk data. This gap in data can lead to oversight failures and missed opportunities for proactive enterprise risk management.

Recognizing this challenge, Diligent and Moody's have partnered on a transformative solution: the first-ever enterprise risk management (ERM) dashboard designed to help chief risk officers, chief financial officers, general counsels and other risk professionals monitor critical risk factors, aggregate findings and present a clear and comprehensive report to the board to drive informed decisions and long-term success for the organization. This innovative tool leverages the powerful market data Moody's is known for, combined with a broad set of internal risk data aggregated from Diligent — providing an unprecedented level of insight and clarity.

The importance of a holistic risk view

For board directors, the ability to see the complete picture of the organization's risk posture is invaluable. Traditional risk management often focuses predominantly on internal risks, neglecting the broader context that includes market fluctuations, competitor actions, supplier issues and overall financial health. This narrow focus can blindside an organization, leaving it vulnerable to external threats that could have been anticipated and mitigated. Board Reporting for ERM, now powered by Moody's, addresses this gap by offering a dashboard that integrates both internal operational risks and external market data. This comprehensive view enables board directors to assess all relevant risks, not just those that are immediately apparent or internal. By having a comprehensive overview, directors can ask more informed questions, challenge assumptions and make better strategic decisions that encompass all facets of risk.

Transparency and enhanced oversight

One of the key benefits of Diligent Board Reporting for ERM is the enhanced transparency it brings to board oversight. With comprehensive, curated internal and external risk data at their fingertips, directors can have greater confidence in their oversight responsibilities. This confidence stems from an enhanced understanding of the risk landscape, supported by data-driven insights that illuminate both challenges and opportunities. Transparency fosters trust and alignment among all stakeholders, including shareholders, employees and regulators. When directors can demonstrate a clear and proactive approach to risk management, supported by reliable data, it enhances the organization's credibility and can lead to stronger relationships with all stakeholders.

Impact on organizational success

The ultimate value of any tool or strategy is measured by its impact on organizational success. The Board Reporting for ERM dashboard provided by the Diligent and powered by Moody's enables boards to make informed decisions that avoid potential pitfalls or seize opportunities others might miss. For organizations, this means not only surviving but thriving in an environment that is often unpredictable and fraught with risks from every side.

The partnership between Diligent and Moody's represents a significant step forward in the evolution of risk management. For boards, Board Reporting for ERM is more than just a tool; it is a strategic asset that enhances their ability to perform their oversight role effectively. In an era where data is king, having access to comprehensive, reliable, and actionable risk data is not just important — it is essential. As organizations continue to face an array of complex risks, from cyberthreats to climate change to evolving competition, the ability of directors to harness the power of data will be a determining factor in their success.

Learn more about Board Reporting for ERM.


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