Risk management process allows an organisation to predict emerging threats, understand the implications, and devise a strategy to avoid or minimize their repercussions.
Most of the Leaders use the term VUCA to describe the environment that we are living in today. VUCA stands for Volatile, Uncertain, Complex, and Ambiguous that implies that the World that we live in is not static and it keeps on evolving and changing with time. We cannot predict the situation or events that await us in the coming future and as global economies are now interconnected, the impact of some unforeseeable event can be huge and widespread.
The COVID-19 Pandemic has given us manifold reasons to think and plan about the risks prevalent in our environment and around us. Traditionally, Risk management was restricted to the finance and insurance sphere but with the advent of the COVID-19 Pandemic which crippled most of the industries and major corporate failures happening all around, the need for Enterprise Risk Management has become desideratum.
This served as a clarion call and emphasized the importance of having a strong risk management process in the business that can address and evaluate the potential key areas of risk across the enterprise which has called in for the demand of risk professionals. The outturn of these developments is that the demand for qualified risk professionals has become prominent, as more and more companies seek to shore up their defenses against future crises. Risk is pervasive across all departments and industries and projects a threat either in a specific area or entire organization.
This opens a plethora of risk management opportunities for students, youngsters, and even adults who wish to build their careers in this field. Essentially, the risk management career objective of risk professionals and experts is to identify potential problems before they occur and have a plan for addressing them. This can be beneficial in terms of adding value to the organization, as these professionals would be able to create risk awareness and prowess in various departments of HR, supply chain, marketing, and many more.
In India, the general focus is on the compliance-based approach to risk and addresses the problems of specific sectors. But there is a requirement to build competencies to manage the multi-stakeholder risks.
Chief Risk Officers have the analytical information to assess the whole lot from delivery chains to staffing; manipulate relationships with regulation firms, coverage brokers, enterprise friends, and fellow executives; efficiently talk to deal with personnel and media in a disaster; be financially literate to apprehend now no longer most effective a company’s stability sheet however additionally everyday operative risks; plan for company’s restoration and resilience. The evolution of ERM keeps influencing us these days with possibilities for our careers to make a difference. Risk has constantly been synonymous with the audit. However, hazard control is a totally unbiased and jointly special feature, and each disaster and enterprise failure has reminded us that hazard wishes to be checked out from an enterprise attitude with a 360-diploma approach, which is going past and above finance and coverage. Some of the vital roles offered in the field of Risk Management are-
- Risk Analyst
- Risk Manager
- Risk Surveyor
- Risk Specialist
- Risk Advisors
- Safety Consultants
- Loss Control Specialists
Multiple Degrees and Certificates to Ace in Risk Management
Institute of Risk Management, the premium institute for Enterprise Risk Management presents multiple professional courses to fabricate a career in Risk Management. Major Qualifications and training can be gathered after studying the courses offered by the professional body. The Risk Professionals who take up the course come out with a practical approach to assess the risk and meet the demands of changing economy.
Candidates can begin a proper profession in agency risk control with IRM’s international qualifications with Level 1 whilst pursuing graduation/post-graduation or maybe whilst working. The advantage of pursuing IRM’s qualifications is the utility of risk in any and each sector, the capacity to retain his/her current paintings or study, and a professional designation this is earned at every level after Level 2.
- LEVEL- 1 Enterprise Risk Management (Fundamentals)
It is a first step to start a career in Enterprise Risk Management, which is a holistic approach, allowing managers to shape a firm-wide strategy to identify the risk and prepare for the hazards taking into consideration the company’s operations and objectives. The examination course will help to build the critical thinking ability for risk identification and its management and will impact in fields of marketing, human resources, procurement, supply chain, information technology, cyber security, sales, legal, research & development, and many more.
- LEVEL- 2 (IRMCert)
Qualification in Enterprise Risk Management provides a perspective of the risk on the current global scenario, analysis of the issues of specific sectors and geographical areas creates the core foundation in the theory and practice of effective risk assessment and management.
The Level 2 Qualification in Financial Services Risk Management peruses the important elements of risk management in financial services taken into consideration the regulatory developments of Basel III and Solvency II for an inclusive understanding of risk management.
- LEVEL- 3 GradIRM
This qualification helps to learn key areas of business resilience, crisis management, business continuity, improving the company’s health and organization’s performance that can help to build a risk-mitigating culture in the organization.
- LEVEL- 4 CMIRM (Certified Member of Institute of Risk Management)
This level provides a universally recognizable batch signifying the technical competence with macro-level experience along with professional development.
- LEVEL-5 CFIRM (Certified Fellow of Institute of Risk Management)
To become CFIRM, CMIRM Designation for at least 2 years is required, work experience of a minimum of 8 years in the field of risk management and have completed a minimum of 30 hours’ continuous professional development over the 12 months before applying for Certified Fellowship.
Career Verticals in Risk Management
They have a promising future as risk managers as these professionals are ready to assess the risk exposure and use their expertise to implement a risk-mitigating strategy for the organization. The Risk Officers will be serving the Board of Directors in guiding the growth objective of the company.
Various career opportunities in Risk Management include:
- Enterprise Risk Manager- An integrated approach towards the organization to identify, assess and monitor the risk impacting its capital and earnings.
- Financial Risk Manager- Managers are required to design strategies to mitigate the risk of financial assets. The risk involved is market risk, credit risk, liquidity risk. FRM is one of the professions growing in demand among people.
- Operational Risk Manager- A risk-averse job, which includes the risk of loss resulting from the inadequate internal system or external events.
- Supply Chain Risk Manager- Managers need to adopt a comprehensive strategy to mitigate the risks in the supply chain covering various risks like legal, environmental, financial risks.
- Digital Risk Manager- Assessing and monitoring the risks such as cybersecurity risks, third-party, and operational risks that can impact the company’s financial and reputational status.
Some Prominent Sectors/Industries for Risk Managers are:
- Financial Institutions’
- Risk Management Consultancy Firms
- Manufacturing Company
- Cyber Security Firms
Thus, in a dynamic world and changing trends, risk awareness has to be generated among people and big corporates to understand the impact and intensity of risks. Risk Professionals need to have a multitude of risks like problem-solving, analytical skills, and decision making. A proper mitigation plan has to be drafted to implement in times of potential crisis. A career in Risk Management is, therefore, a significant and promising area in which students and working professionals should consider building their career and gain expertise by taking IRM Exams and equip themselves with necessary skills which will add value to the organizations by navigating the threats and achieving the goals of the company.
Blog Published by: Sakshi Mishra, Student Risk Committee Member