The success of the risk function – or any function, for that matter – does not solely depend on the skillsets and roles of individual risk managers.
A function’s success also depends on how the company as a whole operates. A recent survey, for instance, found that innovations by one unit often fail to be adopted across the wider company due to issues with how different parts of the business relate to each other (1). Thus, if organizations hope to benefit from future-ready risk managers, they must also reinvent the workplace in ways that enable a successful risk function.
There are four organizational enablers needed to complement the capabilities of individual risk managers:
- A more technology-conversant risk workforce
- Improved connectivity between risk and the wider business
- Risk culture embedded throughout the organization
- A successful transformational change program.
The enablers are explained in detail in a new report titled From Risk to Strategy: Embracing the Technology Shift, prepared by Marsh & McLennan Insights with the support of the Pan-Asia Risk and Insurance Management Association (PARIMA). This report aims to challenge risk managers to further develop themselves as agile professionals and embrace new perspectives when managing risks.
Note: (1) Oliver Wyman and IESE Business School 2018. Organizational agility: Why large corporations often struggle to adopt the inventions created by their innovation units and how to improve success rates in a rapidly changing environment.