Airmic 09: Leave your comfort zones, risk managers told

The current economic conditions give risk managers a great opportunity to become ERM (enterprise risk management) evangelists, but they need to think again about how they approach their jobs, the Airmic conference heard today.

Joe Restoule, president of the US-based Risk and Insurance Management Society (RIMS), and leader, Risk Management, NOVA Chemicals Corporation, told delegates in a conference workshop that traditional risk management skills were no longer enough on their own.

“We should become master communicators and learn how to articulate the company’s risks as we see them in a way that resonates with both internal and external stakeholders,” he said.

Risk managers need to take a broad view of their jobs, he added, one that takes into account the wider context, including issues such as the global economy, geopolitical developments and emerging risks. “Traditional skills are still important, but need to be more clearly demonstrated in a way that relates to the culture and objectives of the organisation,” he said.

Restoule described the current crisis as “a wake-up call” that meant business people can no longer do things the same as before – a fact that applies equally to risk managers and the organisations for which they work. “Prepare to leave your comfort zones if you want to wield the influence that your skills deserve,” he said.

This meant that risk professionals should acquire new skills, such as becoming masters of data. “We should see ourselves as strategic partners in the organisation – more than just risk managers. Therein lies influence,” he said.

Risk managers would have to develop strategies to engage CFOs and CEOs and influence the C-suite, a task he described as “the most difficult challenge facing risk managers.”

“Don’t get left in the dark. Learn how to put a spotlight on your success and make risk management a bright and shining star in your organisation,” he concluded.