How can risk management professionals stay relevant in a rapidly changing industry?

I've frequently witnessed risk management technology complicate tasks and impede projects to create more risks. When technology offers value, I rely on candid feedback from my colleagues to determine whether to adopt, adapt, or customize it to meet our organization's unique needs. My approach begins with People, followed by Purpose, and then the Process. In the world of AI and GRC tools like ServiceNow, Archer, or others, it's vital to understand that they are a component of the Process, not the People or the Purpose. Therefore, I engage with individuals who share a common Purpose, collaborating to discover the most efficient Processes for emerging technologies.

Risk management isn't about playing safe, it's about mastering the unpredictable. Never stop learning. Dive into conferences, workshops, online courses – anything that keeps your brain buzzing about the latest threats, like climate change, cybercrime and more. Make technology your friend. Excel and spreadsheets are good, but data analytics, AI, and visualization tools are the future. Learn these along with your storytelling skills. Lastly don’t forget to network. Keep learning, keep evolving!!

Technology Adoption: As risk managers we need to embrace and adapt to new technologies in risk management, such as artificial intelligence, machine learning, and data analytics. Understanding and leveraging these tools can enhance efficiency and effectiveness.

Digital risk management is a critical part of business management. Digital risk management focuses on the threats and risks to an organization’s data and the IT systems that process it. Digital risk management is important because without it, you can’t be sure that the technology you use is truly worth it; the new technology might introduce new risks even as you want it to solve old problems.In addition, a digital risk management program’s procedures and rules can guide future decision-making on limiting risk while focusing on corporate goals.

Enhance strategic thinking: Transition from a reactive approach to risk management: Instead of just identifying and avoiding risks, broaden your perspective to comprehend their strategic ramifications. Take the initiative to inform leadership about potential opportunities and vulnerabilities. Establish trust as a valued advisor: Cultivate strong connections with key decision-makers throughout the company. Position yourself as a strategic collaborator who can offer valuable insights and guidance on risk mitigation. Champion a proactive risk mindset: Encourage an organizational culture that prioritizes proactive risk management. Emphasize the significance of anticipating and addressing potential obstacles before they manifest themselves.

Learn to take other positions and the language that belongs to that. Be able to communicate with the language of for example a senior manager, or a functional administrator. Also learn risk management in different disciplines, e.g. IT, strategic, operational, financial/credit. This provides you with a more comprehensive package.

Yes, I also think that broadening perspectives in Risk Management is necessary. Embracing a collaborative, cross-functional approach ensures a comprehensive understanding of risks and opportunities. Effective communication and alignment with diverse stakeholders are crucial for navigating the complexities of the modern risk landscape. This adaptability is essential for staying relevant and resilient in an environment where risks evolve continuously.

What I also found very crucial not only in Risk Management but also in our life "A Learning Mindset". Let's consider the shift towards cybersecurity threats—professionals adapting by learning about emerging digital risks, implementing new security measures, and staying abreast of evolving cyber threats. Embracing continuous improvement ensures staying ahead in an industry where change is constant, and agility in learning directly impacts effective risk mitigation and adaptation to evolving challenges.

#continuedlearning has been and still are one my key drivers. The world is a fast changing place, even so more today, with a natural and constant effect on Risk Management. Professionals within Risk Management needs to stay openminded, updated and willing to embrace new techniques, products, legislation and be able to move fast to distinguish new risks as a result of for example a changing world, sudden climate changes, risk catastrophes or a political movement. Bringing a learning mindset into Risk Management might be crucial for being able to produce relevant and true risk evaluations.

I think risk teams “demonstrating value” is easily misunderstood. If the risk team swoops in to save the day at the last minute, that’s actually a bad thing. It means they missed lots of earlier opportunities to catch that risk!! The best risk teams often fly under the radar. They engage early, partner effectively with the business, and manage the risks before they become scary.

I believe navigating risks in reality definitely demands nuanced soft skills. Starting with communication that entails conveying complex risks to the prime stakeholders in a digestible manner, ensuring a shared understanding among everyone involved. Empathy becomes pivotal when addressing concerns, fostering a collaborative environment. Conflict resolution when managing differing opinions within the team to arrive at consensus. Problem Solving through analyzing risks and developing innovative solutions to mitigate their impact. Adaptability to evolving risks, ensuring that strategies remain effective even in VUCA environment.

The no.1 soft skill for risk mangers is strong business partnering. This is because so much risk intelligence is collected through informal conversations rather than formal metrics. Three particular skills that make risk mangers good business partners are: - being able to build and maintain relationships across the business -encouraging people to be candid with you about their concerns. - being seen to have a “how can I help” mentality, rather than the classic “how can I stop” risk mentality!

Perhaps the most striking personality trait of successful risk management professionals is the yearning towards stability. Risk management professionals strive to wade through uncertain (risk-prone) waters to test them and strive to make the environment more manageable/ predictable) stable. Per me, it is this soft skill that makes all the difference in a risk management career.

In the dynamic world of risk management, maintaining relevance requires a steadfast commitment to continuous learning. To aid in this journey, here are some sources for your daily reading: Regulatory Websites and Publications: Regularly visiting the websites of regulatory bodies ensures you're on top of any new developments, guidelines, or compliance requirements. Insights from Leading Consulting Firms: Consulting firms often publish cutting-edge research and insights. Professional Organizations in Risk Management: They offer a range of publications, from in-depth articles to case studies, reflecting the latest in risk management practices and thought leadership.