In today's business world, business owners and leaders are weary due to the growing challenges of cyber threats and rapid shifts in technology, politics, and the environment. This highlights the crucial role of implementing a risk management program for organizational resilience and sustainability.

In this episode, host John Rebecchi (M.B.A. ’83), Ph.D. is joined by special guest Catherine A. Allen, New York Tech's Board of Trustee, and Founder and Chairman of the Board of The Santa Fe Group, a strategic consulting company based in Santa Fe, NM. The Santa Fe Group specializes in briefings to C-level executives and boards of directors in financial institutions and critical infrastructure sectors. Additionally, offering management services for strategic industry initiatives, featuring programs like the Shared Assessments Program, which is designed to address and mitigate third-party risks.

Allen prioritizes risk concerns and management in her company, and as she grows personally, her business advances as well. This advancement also involves incorporating emerging technologies such as cyber security and risk management into her company's portfolio of services. According to Allen, she identifies one of her super power as having the ability to recognize opportunities and risks before others do. She then expertly bring people together to assess the impact of these factors. She added, “Part of it is continuously learning and part of it is reinventing yourself so that you are current with what the market needs.”

Allen shares the significance of artificial intelligence (AI) as both a risk and opportunity from supporting productivity and innovation to workforce distributions and its use as a disinformation generator. According to Allen, “In the next two years, I believe AI is going to impact every aspects of the business, every process function, every third party that provide services.” It will transform the workforce. She added, “It is going to offer great productivity enhancement. It is going to create more time to do more creative things.”

Although AI holds strategic importance for businesses, it also presents risks, especially in cyber security. Allen highlighted that cyber security will become increasingly important for businesses. In terms of risk management, she identifies four fundamental pillars critical for any corporation. These include reputational, geopolitical, compliance, and talent management risks as they have the potential to cascade. Allen added, “It really is a challenge due to the velocity of change.”

While small to medium businesses are often targeted by hackers due to being perceived as "the least resistance." To mitigate these risks, Allen offers a three-step approach. First by identifying all potential risks, including both known and unknown ones. Second, initiate discussions focusing on these risks. Third is to establish risk metrics by identifying each risk, its probability of occurrence, and assigning a risk committee to manage them. Allen also suggested in regularly reviewing these risk metrics and hold quarterly board meetings to address emerging risks and trends.

For those venturing into entrepreneurship or starting out in their career, Allen emphasizes the importance of seeking the right mentors and sponsors while highlighting their distinctive roles each play. She explained, “A mentor helps you with a specific problem or help with legal or personal issue.” On the other hand, a sponsor is someone who supports your advancement, whether it be a venture capitalist, private equity investor, or your immediate supervisor. She added, “Sponsors would see your talent and bring you along with them.” Another aspect is to develop an understanding of the various roles within the organization, the pros and cons of private equity and venture capital, along with what it involves before pursuing any funding opportunities. Lastly, Allen reinforces the significance of being adaptable and ready to pivot when necessary.

Listen to the full episode: Podbean, Apple Podcast, YouTube Podcast, Spotify.

By Patthara Chandaragga