Dr. Abdulmuttani Almazrouei, a researcher in crisis and risk management Almazrou73@ Some organizations view “risk management” as a regulatory burden that consumes time and budget, slowing down decision-making. This perspective often stems from several reasons, including:

• Excessive complexity in the models used.
• Short-term costs of training and technologies.
• Internal resistance from some employees who see it as a constraint on their flexibility.

Without a strategic vision, risk management becomes a formal procedure with no real impact, but reality proves otherwise. In recent years, the world has witnessed major crises faced by global organizations due to weak risk management, which could have been avoided if effective methods were applied. Major technology companies have incurred billions of dollars in fines due to non-compliance with data protection laws, causing huge financial losses and significant reputational damage.

Reports from 2025 showed that the lack of clear vision in managing third-party relationships increases the likelihood of legal and technical breaches.

Academic studies have shown that combining diversification and hedging strategies with modern technologies such as blockchain enhances organizations’ ability to predict risks and improve transparency and compliance.

A 2024 study by the University of Wisconsin revealed that implementing effective Enterprise Risk Management (ERM) practices reduces costs and increases revenues.

At the governance and compliance level, reliance on GRC platforms and AI-supported institutional maturity models has become a key trend in modern organizations, as it helps reduce reputational risks and build trust with investors and customers.

Therefore, objections viewing risk management as a burden often stem from ineffective traditional practices. The solution lies in:

• Simplifying tools using technology and integrating them into strategic decisions instead of isolating them.
• Spreading an institutional culture that sees risk management as an empowerment tool rather than an obstacle, linking results to KPIs to highlight its real value.

Thus, risk management transforms from an administrative burden into a strategic tool that grants organizations real capacity for growth and development. When managed effectively, risk management becomes a strategic tool supporting growth and providing organizations with a more stable and confident future.