Page 14 - Risk Report 2024

IRMSA
14 RISK REPORT 2024/25

Risk driver

A risk driver is anything that influences the nature of a risk. Risk drivers can be positive or negative, and internal
or external. One risk driver can influence more than one risk, and/or multiple risk drivers can influence one
risk. Examples of risk drivers are economic conditions, regulatory changes, technological advancements, human
factors, operational processes, and environmental conditions. An example of how a risk driver influences a
risk is where technology changes so quickly that risk controls are outdated by the time that risk causes are
addressed. In an E-commerce Company the cause for the risk of a data breach would be insufficient encryption
practices. To address the cause, the Company will improve encryption, but by the time that it is done, the nature
of the risk was influenced by the risk driver to the extent that the control is no longer effective and a new control
must be developed.

By identifying, analysing, and understanding risk drivers, organisations can be agile, fail fast and fail forward
where necessary, and be ahead of the curve when responding to their risks.

Functional State

Rule of Law

Water

Energy

Logistics