The Risk Managers expanding role
Increasing attention is being paid to risk management in today’s business climate. How has this function been evolving and where is it heading? To find out, Maria Boicova and Regine Slagmulder (Vlerick Professor of Accounting and Control) interviewed a dozen managers in risk functions at non-financial companies in various European countries.
In the past, 98% of the corporate risk manager’s job was focused on insurance. However, over the last 10 years or so, risk management has evolved from ‘making sure that all necessary insurance policies are in place’ to ‘protecting the business against risk’
So, what is the risk manager’s role today? He or she identifies and assesses threats to the organisation, puts contingency plans in place, and decides how to avoid, reduce or transfer risks. No longer just an insurance specialist in an isolated part of the organisation, today’s risk manager is a strategist, a communicator, a facilitator and an organiser rolled into one.
In the future, the risk function will be much more important than ever before.
Risk manager of an automotive company
Safeguarding the Company’s Performance
The function has become highly interactive: the risk manager needs to be able to communicate with people at all organisational levels and within all domains. Constantly engaged in business processes, the risk manager monitors them inside and outside the company to capture the potential uncertainties that can affect the company’s performance. Overall, the survey respondents believe that the risk function will continue to evolve and grow in importance. Risk managers anticipate executive management becoming more risk aware and being more involved in the risk management process. This is especially important given the speed with which risks can affect business today.
Download the full article: ‘Risk Managers of Today: On the boundary between yesterday and tomorrow’