What qualities will set you apart in the future of Risk Management?

Agree with the writers views but want to emphasize the importance of understanding and buying into the organisation's strategic intent. As a risk manager dont see yourself as an island, understand what business is trying to achieve and find ways within the risk framework to help them do that, dont be a hand brake in high speed chase. Collaboration - bringing people along, dare I say, 'influencer', will go a long way in creating a risk mindset in business.

A successful risk manager is like a skilled pilot. Just like a pilot does not need to be a fluid dynamics expert but rather possess a gut feeling of how unexpected air streams may affect the plane's safe flight, so a risk manager does not need to solve SDEs (Stochastic Differential Equations) but instead be able to evaluate the applicability (or non-applicability) of the available technical implementations in a practical context. The risk manager should be mathematically literate, but not so much that the forest is missed for the sake of the tree. Good understanding of the organization's targets and the various stakeholders' interests is a plus, but can easily turn into a minus if "trying to please" starts interfering with risk analysis.

Continuous skill development is vital for risk professionals in the dynamic field of risk management. This entails technical expertise, data analysis, communication, stakeholder management, leadership, collaboration, and adaptability.

In the future of Risk Management, qualities like adaptability, analytical thinking, and technological proficiency will set you apart. Being adaptable means you can quickly adjust to new risks and regulations. Analytical thinking allows you to evaluate complex information and make informed decisions. Technological proficiency is crucial for using advanced tools to identify and mitigate risks efficiently. Additionally, strong communication skills will enable you to explain risk assessments clearly to stakeholders. These qualities will help you stay ahead in the dynamic field of Risk Management.

Professionals need to be adept at analyzing data, identifying patterns, and drawing meaningful insights. Utilizing data analytics tools and techniques allows for a more informed decision-making process. Being able to interpret complex information helps in understanding potential risks and devising effective strategies to mitigate them.

Analytical thinking is crucial for dissecting complex issues and forecasting risks, while attention to detail ensures no potential threat is overlooked. A strategic viewpoint allows for aligning risk management with overarching business objectives, making it essential for long-term resilience. The ability to analyze data is indispensable for identifying patterns and making informed decisions. Excelling in relationships is key to fostering collaboration and ensuring stakeholder buy-in, making these skills vital for a comprehensive approach to risk management.

The ability to collaborate in my view is essential as risk can become very theortical and paper based at times. Understanding the process and influencing practical actions by the people making decisions must be at the heart of effective risk management.

Most valuable skill in risk management is the ability to “see” around the corner and anticipate risks BEFORE they occur. This requires you to be a true strategic partner to your business; understand not only what the organization’s goals are, but how they plan to get there. Are they trying to grow top line revenue? Knowing that might be a good start, but understanding HOW they plan to do so will make you a true strategic partner. A company who plans to grow revenue by upselling to existing customers will have a different risk profile than one seeking to grow revenue by entering new foreign markets. Your ability to anticipate and prevent risks using deep knowledge of the company is what will turn you from an SME to a trusted advisor!

Strategic vision is imperative in a dynamic environment. One need to be able to focus on the objective and deploy a strategy that will get you to the goalpost, while not losing sight of the objective and the most plausible and efficient way to reach it without getting distracted by te noise.

In the past, Risk Management was successful when the Risk Manager had the ability to interpret the mindsets of the stakeholders. The attitude to probe into human thoughts and habits was helping to control risks. Basis strategic visions were developed, and plans were implemented. In today’s world, technology (AI + non-AI tech.) is equally important! So, where do the Risks finally conjugate, I.e. In what form, process, or scenario, quite a lot depends upon technology. Interpreting the impact & usage of tech is an optimal quality for any Risk Manager. In other words, the Strategic vision of Risk Management shall significantly depend upon technology and its implementation, mainly due to Artificial Intelligence, which has no defined boundaries.

According to me, risk management process cannot be successful without stakeholder collaboration. There should be effective communication and coordination among team members, locations, departments, CXOs, first line of defense, second line of defense etc. By working together, individuals can pool their knowledge and expertise to identify potential risks, analyze their impact, and develop strategies to mitigate them. Additionally, collaboration fosters a sense of shared responsibility and accountability, ensuring that all stakeholders are actively involved in the risk management process.

Good risk management cannot be reached without good collaboration with stakeholders. As there are always new products and business behaviors happening in this fast pacing world, new risk controls are developed to manage the accompanying risks. A risk manager with good collaboration skills can implement the controls more smoothly for example on new business strategy, new products, or triggered by events. Good collaboration and reliability bring trust among stakeholders and increase communication efficiency. Beside managing risks generated from the market, Risk Management is also about managing people. Good collaboration skills is a risk management tool to reduce the people risk to the lowest level.

A good risk manager is one able to break the silos and involve all parts of a company in the development of a risk management strategy. To do this, you need communication skills, creativity and a good dose of persistence, patience and entrepreneurship

In order to collaborate, we first need to understand the motivations, KPIs and objectives of individuals we are working with. And then formulating a working strategy that includes them. Only then can we form win-win alliances.

In my experience as Armed Forces risk manager, I find that collaborative are the greatest asset any leader can possess. Any risk management system will fail if those who need to implement it are not inspired to do so. To be inspired or motivated is best achieved by integrating the workforce in the risk management system. Get to know their ideas and solutions, let them identify issues that hinder operations,...ask the people who "Get Shit Done".

Drawing from my experience, acting with integrity and accountability not only safeguards an organization's reputation but also fosters a culture of risk awareness. Adherence to best practices and regulations, while being transparent and inclusive, has been instrumental in navigating complex risk scenarios. Promoting ethical behavior and decision-making across all levels ensures compliance and cultivates a resilient organizational environment.

What is important for me is that people deliver at their best even when 'no one is looking'. This is the basics of the ethics- you do the right thing, even despite the circumstances

Professionals must adhere to ethical principles to build trust and credibility within their organizations. Upholding integrity in decision-making and ensuring transparency in risk management processes are vital for sustaining a positive organizational culture.

In my experience, what sets you apart is the ability and willingness to use your expertise and join others in the elaboration of new ethical standards and practices where these may not exist yet or where regulation is non existent. My advice would be to answer the call when you are asked to join an industry working group, or where a regulator seeks industry input. It is pointless complaining about poorly designed regulation if you are not willing to help fix it. Yes, it can mean more work in addition to the day to day but it is also rewarding and sets you apart as a problem-solver.

Act with honesty and transparency. Do not make promises if you can't deliver. Be upfront about expectations and include moral values in every interaction and decisions.

Learn GRC Governance (how does your company/organization operate, internal ethical standards, mission statement align with risk tolerance, human capital treatment, board make up/development, reputation and brand) Risk(organization risk corridor, ERM, exposure v. panic, risk assessment, third party risks, tolerance and strength and benchmarking) Compliance (local, state, federal, country, banking, stock market, industry and ISO compliance, laws, regulations, rules, reporting, monitoring, dashboard, and training) Develop the future by being curious and not judgmental.

In the evolving landscape of risk management, learning agility is crucial for staying ahead. Alongside this, analytical prowess, strategic thinking, effective communication, and collaborative teamwork are vital. These qualities empower professionals to adapt to new challenges, assess risks accurately, anticipate future threats, communicate strategies clearly, and collaborate effectively across diverse teams, ensuring robust risk management in dynamic business environments.

One of the top ways risk managers have to adapt is through the use of data and quantitative insights, given the abundance of information that is available to support risk assessments and loss quantification. Data on previous risk events that materialized should be used to inform future assessments and investment in risk treatment. However, this data is not usually found all in the same place, so research skills are very valuable.

Being able to incorporate AI tools in risk management will set you apart from the rest. The future of work is evolving and so is risk management, having learning agility is critical to ensure that one is equipped to adapt in uncertainty.

Learning agility is a key quality for future-ready risk managers. It involves continuous learning and quick adaptation to changes. Open-mindedness, flexibility, and embracing new ideas and technologies are essential for improving risk management capabilities. Self-motivation, resilience, and a drive for feedback and improvement are crucial for enhancing skills and competencies. Curiosity, resourcefulness, and the ability to leverage networks for knowledge sharing also define a learning agile risk manager.

Most important thing will be the ability to access and analyse data. With exploding data it’s critical for risk managers to be able to consume data and make sense of it. Second will be to establish patterns and trends across newer data sources . The future is not about analysing flat files and filling out rcsa sheets

Risk management is all about foreseeing the unforeseen ! From where a fresh risk will emanate is something that a risk manager has always to remain wary of. Next attack can come from cyber side or asset portfolio or liquidity management or simply a new regulation turning everything topsy turvy ! What can’t be foreseen must be tackled promptly and hence agility is another requirement.

L'esprit critique est une qualité qui sera encore plus indispensable les prochaines années, pour la gestion des risques. Il est plus important que l'esprit analytique.

One of the best quote i heard and work on is: " Strong belief, loosely held". What does it mean? It means that even when you have strong conviction, faced with opposing data, you are open to change your position and do a data driven decision process.

Interdisciplinary knowledge: The conventional method of risk management, typically confined within silos, is inadequate in today's business environment. The disconnectedness of modern organisations and the dynamic nature of risks necessitate a more integrated and interdisciplinary approach to risk management. Risk management professionals are required to have a broad understanding of various fields such as finance, cybersecurity, compliance, and technology. A multidisciplinary approach enables comprehensive risk assessments and holistic mitigation strategies.