Six Common Slipups Risk Managers Commit
Comprehensive risk management in an organization requires the risk manger to have an eye for details.
Many skills need to be satisfied by a risk manager. Speed, skill, efficiency and accuracy usually qualify a risk manager for a job today. Learn these common mistakes committed by risk managers and know how to avoid them.
- Softening on safety and loss control
Not surprisingly, safety and loss control measures take a back seat in the corporate world.
Risk managers usually walking out of high-end business schools or whom are mainly experienced in finance and insurance, treat loss control as a terminology in books and tend to reserve little attention for it. The inattention combined with, a lack of interest by the organization causes inactivity in safety and loss control.
It is the duty of a risk manager to educate the organization’s people about safety and loss control, and win the support of top-level executives to back it up.
- Failing to identify loss exposure
There are plenty of reasons to miss out on loss exposure. The major cause is introducing new products, services or changes in the market. An early survey or feedback is not something you can acquire.
Risk managers should be constantly aware of the changes. Monitor and evaluate the consequences in terms of emerging loss exposure or heightening existing exposures.
- Risks are everywhere, don’t run away
There are considerable amount of risks in every business decision and action. It is the job of the risk manager to expose the possible - negative side of any transaction.
To avoid risks, you cannot avoid creating changes. The key lies in strategizing a strong defence line against the risk and envisioning if it can considerably mitigate the risk’s impact. If so, the risk is worth taking.
We all know that communication is an inevitable part of risk management.
The problem many risk managers face are:
- In spite of being skilled and knowing the jargons, risk managers may not be able to communicate adequately, to management or the rest of the organization. A risk manager should customize communication to the target audience.
- Top-level executives are always on the run, it’s your job to grab their slots and clearly address your agenda.
- In a nutshell, keep it short, simple, effective and engaging. Needless to say, feedback will be helpful in determining the effectiveness of your communications.
- Zest to learn! And yes, people and computers can’t be avoided
Failing to broaden your knowledge base is a blunder.
You have lots to learn. Industry knowledge, technology, soft skills are all in the list. You have to continuously keep updating yourself as the world ofoperational risk management keeps evolving.
Here are two main areas you need to develop your skills.
People – Efficient risk managers know the importance of being in the same league as the people of their company. They have to be in good terms with other departments to implement their plans without glitches.
It is better if you have a good network of people in the company, because it simplifies your role as a risk manager.
Technology – The market is observing more and more technology-based risk management tools. To access networks and integrated data, and obtaining timely reports, a risk manager must be adept at using his/her technology tools.
Doing it yourself is not something your job role asks for. A risk manager’s role includes the duty of efficiently coordinating work order and that can’t be done without the cooperation of other employees.
Instead of running around all the time, you need to delegate work, have an objective perspective, engage and be part of the organization.
Ameera Tabassum is an ACCA Affiliate. She has diversified experience working as Business Process Consultant for an Audit solution company in the Uk. She has over 4 years of experience in enterprise risk management solutions and as a practicing manager of Business analysts successfully executing several projects in terms of Risk management strategies, risk management software and Governance risk compliance.