The Future of Risk, Gen AI, Skills-Driven Transformation, and Career Alignment

Welcome to the 15th edition of C-Suite Bytes.?

This edition looks at how evolving risk, generative AI, and talent strategies intersect to drive growth, with insights from KPMG Australia , 麦肯锡 , and Harvard Business Review .

? What’s new: To add more value to this newsletter, we’ve gathered expert insights from our network to give you real-world perspectives from leaders in the field.

3 Things

Click on the links to join our discussion. ?

1. I've sat through 30 interviews, and I've seen 3 glaring issues that keep coming up.

2. Never stop. You're definitely wrong about something, but so is everyone else.

3. If it's yours, you can never stop. Full stop.

The Future of Risk?

Source: https://kpmg.com/au/en/home/insights/2024/08/future-of-risk.html?

KPMG’s report on the future of risk urges enterprises to transform their approach to risk management by integrating risk into every strategic decision.?

Key Points You Should Know:?

• 61% of executives expect a significant increase in the level of risk they will be responsible for in the next 3–5 years.?

• Risk is now viewed as a value creator, with 66% of CEOs and COOs emphasising the need for cross-functional collaboration.?

• Digital acceleration and data analytics have significantly improved risk management, yet new challenges like cyber security and AI bias arise.?

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Expert Perspectives: Insights from the Field?

Cyber security consultant Mike Gamble weighs in:?

The megatrend is that the pace in the world continues to accelerate, and monitoring and analytics are trying to keep up. It is part of the C-suite’s job to consider “what ifs,” so no surprise that KPMG has come to that conclusion.?

The world is seeing or recognising new risks, and they are fast moving and/or wide-reaching:?

• Insurance companies are backing away from coverage in areas now prone to flooding or fires, as extreme weather events become more frequent and intense?

• COVID exposed vulnerabilities in supply chains. These now need to diversify and be less reliant on geopolitical uncertainties and the workforce, where resourcing may change suddenly?

• Reputational risks can escalate instantly through social media?

• And our focus at @ThunderLabs: New tech is causing uncertainty in brand new areas, like AI and cyber security.?

A key takeaway from us is that cyber security should be treated as a business risk, not just a technical one. Countermeasures need to be in place, with budgets and education applied accordingly.?

The Gen AI Skills Revolution: Rethinking Your Talent Strategy?

Source: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-gen-ai-skills-revolution-rethinking-your-talent-strategy?

McKinsey’s insights into the GenAI skills revolution highlight the need for organisations to focus on skills over traditional roles to adapt to rapid technological advancements. ?

Gen AI presents opportunities for software talent to enhance productivity, improve code quality, and reduce product development time. Early experiments show significant improvements in productivity (30-40% at IBM Software). However, only a small percentage of companies (13%) are systematically using gen AI in software engineering.?

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Key Points You Should Know:?

• To scale gen AI's capabilities, companies need to "rewire" their operations, particularly in developing talent for future needs.?

• New skills for engineers:?

? Shift focus from “doing” to “reviewing” AI-generated code, requiring advanced code evaluation and problem-solving skills.?

? Skills in integrating gen AI models and applications will become essential.?

? Engineers will also need to develop higher-level design skills and enhance their communication with non-engineering teams.?

• Product managers' evolving role:?

? Upskill to work with gen AI, including proficiency with low-code/no-code tools and AI frameworks.?

? Trust issues around AI require PMs to focus on adoption strategies and risk management, working closely with risk experts.?

• Gen AI might change or merge existing roles (e.g., PMs and engineers becoming "product developers" who manage both code and product design).?

• New roles around AI safety, LLM management, and model performance oversight (LLMOps) are expected to emerge.?

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Expert Perspectives: Insights from the Field?

Shane Mercer , a Digital Solutions and AI Technologies consultant, challenges the article’s perspective:?

The idea of engineers focusing on reviewing AI-generated code rather than writing it is misguided. Any developer I know would quit if told their role was shifting to reviewing AI-generated code. Senior developers often dislike AI because it threatens one of the skills that make them valuable — writing code quickly. In contrast, junior developers appreciate AI as it levels the playing field, allowing them to write great code more efficiently, often turning days of problem-solving into minutes or hours.?

In the future, I believe developers' roles will shift toward spending more time on thoughtful abstractions and system design, using AI to generate and evaluate various approaches. This is similar to the old analyst-programmer role, where much of the work happened before writing a line of code. However, most developers aren't trained this way, and I expect some resistance—though new developers may adapt more readily, eager to work efficiently and adopt a more analytical, design-driven approach.?

A final point to consider: customers often request developers with specific expertise in tools like Reactjs, Redux, Vite, and Tailwind. If AI is used effectively, developers only need a foundational understanding of Reactjs; AI will handle the rest. Recruitment should focus more on base-level competency, experience with AI, and team fit rather than specific tool knowledge.?

7 Questions to Ask When Weighing a Job Offer?

Source: https://hbr.org/2024/09/7-questions-to-ask-when-weighing-a-job-offer?ab=HP-hero-featured-text-1?

Harvard Business Review provides a comprehensive guide to evaluating job offers, focusing not just on the salary but also on cultural fit, growth potential, and alignment with personal and professional goals.?

Key Points You Should Know:?

• “What am I overlooking?”??

It’s easy to get caught up in the excitement of a new opportunity. Ensure you're not ignoring potential red flags or making assumptions that could affect your satisfaction and success in the role.?

“What’s the company culture really like?”??

Understanding the true nature of the company culture can be challenging as an outsider.??

• What’s my prospective boss really like — and will we click both personally and professionally??

The relationship with your direct manager can significantly impact your job satisfaction and career growth.?

• What’s my potential for growth at the organisation??

Look for signs that the company invests in its employees’ growth and development.?

• What relationships am I going to build???

Assess whether the organisation fosters a collaborative and supportive environment.?

• Beyond salary, what else can I negotiate that would benefit me in this role??

Consider other benefits that could enhance your work experience, such as flexible working arrangements, professional development opportunities, or additional perks that align with your needs.?

• What’s my exit strategy??

Understanding your options if things don’t work out as expected is vital. Consider the company’s stability, your career trajectory, and the broader market conditions to ensure you’re prepared for any scenario.?

Expert Perspectives: Insights from the Field?

Ali McKee , Customer Success Manager in Recruitment, offers her perspective:?

If you’re going to ask these questions and engage in the conversations mentioned, you must be ready to truly listen.?

It’s also essential to approach a new role with the mindset of building a mutually beneficial relationship with your employer and peers. If you expect to take without offering anything in return, success is unlikely.?

Before discussions on outcomes and benefits, consider what you need from your manager, the company culture, your peers, and your personal growth. Reflect on: "Who am I when I show up for work, and how does that impact the results I want??

Wrapping It Up?

The intersections of AI, risk management, and talent strategy present both challenges and opportunities for today’s leaders. The key takeaway? Embrace the complexity.??

By integrating advanced technologies, rethinking risk, and developing a flexible talent strategy, we can position our organisations to thrive in an ever-evolving landscape.??

Stay ahead by asking the right questions, making informed decisions, and continuously adapting.?

Subscribe to C-Suite Bytes for more insights, and don’t forget to share this edition with your network. Let’s continue this conversation and shape the future together.?

Thanks to Mike Gamble , Shane Mercer , and Ali McKee for sharing their insights!