In the RIMS 2012 report “The Evolving Role of the Risk Professional”, recommendations included that risk managers view risk in a new way that “builds internal alliances, and enhances the strategic decision-making capability”; this in turn would require “specialized communication and technical skills”. According to a Deloitte study, however, risk professionals are still perceived as working in silos, addressing risk in a fragmented manner using limited skill sets. This post examines the multiple effects of Enterprise Risk Management upon the risk manager’s conceptual and technical competencies.
The Definition of Risk
The definitions of risk given in the standards (e.g., ISO, COSO, AS/NZ) give the basis of my argument. They connect risk directly with organizational goals and objectives. In a broad sense, these definitions have implied the expansion of risk management beyond the conventional scope of corporate finance/audit and commercial insurance. The latter are specialties within a wider process of planning and management. Consequent new aspects of the risk management function — 6 specific roles — are discussed next. Read the rest of this entry »