The first part of what looks to be an interesting round table discussion – published by Insurance ERM magazine – on where risk management is heading.
The senior insurance risk professionals around the table firstly recognise that risk should be an ‘optimiser’ for the business, enabling executives to make informed decisions. The risk function is being asked to respond to more commercial and strategic questions which means risk professionals need to develop their own agendas and skillsets so that they are equipped to explain regulation and assumptions to the business and to the Board. Risk needs to be better aligned with the business and able to respond to enterprise-wide demands. The function is becoming wider in their engagements across a business whilst still needing to be a technical expert in specialist areas.
These themes all resonate with what clients are asking of us when making a new CRO appointment, and not just within insurance by any means. The requirement now is for deep leadership expertise along with a real technical ability; credibility at Board level and the skill to translate the technical concisely; commercial judgement and strategic input outside of risk; influencing a better enterprise-wide risk culture; and, external stakeholder management – largely with the regulators. All whilst remaining independent and a respected a voice around the ExCo/Board. A changing landscape and not an easy task for those that hold these positions.
You can read the full article by clicking here.