Every organisation faces the risk of the unexpected. With the rapid pace of globalisation and the volitivity of markets, the risks modern businesses face are unprecedented, and complex. Whether that is managing the fall out of global events such as Coronavirus, or the outcomes from strategic decisions, understanding the potential for risk is a vital Governance issue for any organisation.
As a Risk Manager, it is your responsibility to analyse and assess the range of potential risks the organisation faces and to develop options and recommendations so the board can make decisions. You need to develop an intuitive sense of what could go wrong at any time, how it could affect the company’s profitability and to develop a range of actions that could be taken to mitigate the risk, or to deal with its consequences.
Ultimately, a risk management strategy is intertwined with organisational strategy, and its appetite for risk i.e., the amount of risk the organisation is willing to accept to realise its objectives.
Main duties and responsibilities
The role of Risk Manager involves extensive gathering of data and carrying out investigations to assess the risks an organisation could be exposed to. This will involve determining key risk indicators (KRI), assessing risks in business processes, and conducting what-if analyses to determine the scale of risk. Risks could include, for example, operational, compliance, financial or technology risks, to name but a few.
The challenge as. Risk Manager is developing and implementing the control systems that monitor risk and the development of actions plans for safeguarding an organisations assets and resources. Some measures include defining crisis management processes, designing business continuity plans, designing operation protocols and insurance coverage through to updating business procedures to include best practice. Typically, this involves:
Skills and experience
As a Risk Manager you will need to have excellent analytical and problem-solving skills. You need to be able to see the bigger picture and to break it down to look strategically for solutions. You need to work in close collaboration with different departments and stakeholders, demanding strong communication, presentation and influencing skills. In addition, you would typically have the following skills and experience:
To become a Risk Manager, you will need extensive risk management experience, operational and IT technical knowledge and a recognised specialised qualification in the field such as Professional Risk Manager (PRM) certification. You will also, usually be required to have a degree in Statistics, Business Finance, Economics, IT or Mathematics. You will also need to have a good understanding of corporate governance, internal audit, quality assurance, security, regulatory compliance, risk management and data analysis.
Risk Management Statistics