In the ever-evolving business landscape, enterprise risk management (ERM) has moved beyond mere compliance and now plays a vital strategic role in organizations. With the integration of artificial intelligence, big data analytics, and other digital tools, risk managers need to expand their skillsets. While the IRM’s Global ERM qualifications recognised across 140 countries provide excellent technical skills across all Levels, here are 18 futuristic soft skills every risk manager needs to excel in the dynamic world of risk management:
1. Adaptability: The ability to adjust strategies and processes in response to changing business landscapes, regulations, and technologies is a crucial skill.
2. Emotional Intelligence: Understanding and managing emotions can facilitate better decision-making and foster productive relationships with stakeholders.
3. Empathy: The capacity to understand others’ perspectives is vital for building relationships, navigating conflicts, and fostering a collaborative environment.
4. Critical Thinking: As risk management becomes more complex, critical thinking skills are vital to analyze situations and make informed decisions.
5. Creativity: To anticipate and manage novel risks, risk managers need creativity to devise innovative solutions and strategies.
6. Resilience: The ability to bounce back from setbacks and adapt to changes is crucial in managing unforeseen risks and crises.
7. Future Orientation: Risk managers need the ability to anticipate future trends and scenarios to plan for potential risks effectively.
8. Cultural Intelligence: With the globalization of businesses, understanding different cultures is vital for managing risks associated with international operations.
9. Communication: Effective communication skills are crucial for conveying risk management strategies and insights to stakeholders.
10. Collaboration: The ability to work effectively with diverse teams across the organization is necessary for comprehensive risk management.
11. Ethical Leadership: Upholding ethical standards in decision-making and actions fosters trust and mitigates reputational risks.
12. Strategic Thinking: Risk managers need to understand how their actions align with the organization’s broader strategic goals.
13. Problem-solving: The ability to identify and implement effective solutions to risks is a key skill for risk managers.
14. Negotiation: Risk managers often need to negotiate resources, budgets, or buy-ins from various stakeholders, making this skill essential.
15. Data Literacy: While not a traditional soft skill, the ability to understand and interpret data is increasingly crucial in our data-driven world.
16. Learning Agility: The capacity to learn from experiences and apply those learnings to new situations is critical in the rapidly evolving field of risk management.
17. Active Listening: Paying close attention to others’ ideas and concerns can reveal important insights and foster stronger relationships.
18. Self-awareness: Understanding one’s strengths and weaknesses can guide personal development and improve interactions with others.
In summary, the enterprise risk managers of the future will need a combination of these soft skills and technical skills to navigate the complexities of modern risk management successfully. The dynamic business environment requires risk managers to be adaptable, emotionally intelligent, empathetic, and equipped with a host of other skills to effectively mitigate risks and drive strategic growth.