Have a read at Rick Nason’s ideas about the new risk management professional. He explains how “the career in risk pendulum may have shifted and that mathematical skill may not be the competitive advantage it once was.” He continues “mathematical skill combined with creativity, artistic and humanistic skills are the portfolio of skills that are now necessary in risk management.”
The new risk management professional is creative
- RiskCenter: Operational Risk – SEC Approves Enhanced Disclosure about Risk, Compensation and Corporate Governance
- Rick Nason asks What is Risk?
5 thoughts on “The new risk management professional is creative”
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I think that there is a big difference between financial risk management and the rest of what is commonly termed “Enterprise Risk Management”. This remaining piece is generally poorly done due to the application of financial techniques to what is essentially a “people” problem. Techniques that cover the softer/psychological side of risk are required.
I agree Keith.
I view ERM implementation as a change management exercise with risk management content. Anyone can identify and assess risks and stop there. Sadly, I’ve witnessed situations where Chartered Accountants (CA) in senior finance positions have a bias towards individuals with the same CA designation; they don’t understand the skills requirements to do this kind of work. I call this hiring the “least worst” rather than the best person for the role.
This is exactly the theme I talk about to take the risk profession to the next evolution. Essentially we need to see the risk professional as a mash-up of quantitative methods, qualitative methods and judgement, innovation and revolutionary thinking. The professional has always been one of historical conservatism, so this is going to be a huge challenge for us all to embrace.
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