I am often asked “what are the key requirements that make a good risk manager?” My first response is “to be able to walk on water”. Such is the required varied skill set of a good risk manager.
The roles and responsibilities of the risk manager are many and varied depending on the organization they belong to. I will use the example of an organisation that has an independent risk management function where risk, and the day to day management thereof, is owned by the business. Let’s look at the key characteristics of the Chief Risk Officer (CRO) and the staff of the independent function.
The main function of the independent risk manager is to review and challenge what the front line business is doing to manage risk. In addition, they should be seen as subject matter experts and assisters in developing and maintaining the risk management frameworks. They should be seen as value-adding and adopted by, and engaged with, front line staff.
Here is my list:
This list is daunting but highlights the incredible challenge the risk manager faces. That said, I could not imagine a more varied and mentally stimulating role in business, one that touches every part of an organisation, every person, and every stakeholder and one that stretches your capabilities on a daily basis.
Such is the role of the CRO!
Protecht prides itself in its vast experience in delivering risk management training to help the risk managers of a business, in the wider sense, learn the many technical skills required of the role.
This is an updated version of the original blog published in June 2016.
Author of 'A Short Guide to Operational Risk', David Tattam is an internationally recognised specialist in all facets of risk management, particularly at the enterprise level. His career includes many years working with PwC, as well as two Australian banks. His achievements include the creation of the Middle Office (Risk Management Department) for The Industrial Bank of Japan in Australia and the complete implementation of all Australian operations, systems, procedures and controls for Westdeutsche Landesbank (WestLB).