WhAt does it tAke to be A risk leAder?€¦ · to be A risk leAder? A guide to risk leadership In...
Transcript of WhAt does it tAke to be A risk leAder?€¦ · to be A risk leAder? A guide to risk leadership In...
CGMA® suMMAry
WhAt does it tAke to be A risk leAder?
A guide to risk leadership
In collaboration with
introduCtion
The risk landscape is constantly evolving and becoming more complex. Being able to identify and ‘manage’ all the risks to an organisation is no longer possible.
The increasing complexity of the business environment calls for a new approach to managing risk, one that promotes resilience in a heavily interconnected and integrated world. An organisational risk leader will help drive the success of the business and take charge of the risk agenda.
CGMA designation holders are well prepared to take on this role.
© 2015 Korn Ferry. All rights reserved.
The experience and qualities required to fulfil these requirements
Risk’s ‘culture-carrier’; establishes the right culture with the board and senior management team
Understands the present status of risk culture and drives a winning strategy to a mature culture that is right for the business
Creates an open culture where learning from mistakes is possible. Builds a network across the business to embed appropriate risk culture
Creates and maintains a pragmatic, business-focused framework, utilising management information to support risk/reward business decisions and culture
Considers internal and external factors in the design and coverage of the function: creates a fluid structure; able to continually improve, adapt and evolve
Creates a risk function that can partner the business, enabling it to take ownership of risk with the risk function being the guardians
Helps board set the risk appetite in line with the business model and acts as wise counsel and effective challenge to CEO, board and broader business
Aligns business with balanced risk/reward approach for effective commercial business decisions
Navigation of board and executive relationships
STRATEGICPARTNERSHIP
ORGANISATIONALCAPABILITY CULTURE
EXECUTIVELEADERSHIP
Creates vision and purpose for the risk function; inspires excellence in business partnership to create credibility and value
Creates an enterprise-wide function that balances framework, policy and process with forward-thinking capability and navigation
Constantly considers future challenges including succession and ‘future-proofing’ function
WHAT DOESIT TAKE TO BE ARISK LEADER?
FiGure 1: What does it take to be a risk leader?
CourageCourage of convictions
Able to communicate in a balanced and considered manner
organisational & stakeholder
navigationInfluence and independence
Understands the business and individual drivers; navigates
well to deliver responsibilities
Impacts in all environments and interactions
How to develop the skills of a risk leader
An effective risk leader creates and promotes a culture of quality decision making. Management accounting is at the heart of quality decision making, guided by the Global Management Accounting Principles©. Risk management is one of the practice areas of the principles, and risk leaders who adopt the four principles of influence, relevance, value and trust will be perfectly positioned to deliver on the key components of the role to enable quality decision making for the organisation.
Learn more about the principles at cgma.org/principles
The CGMA Competency Framework is the foundation that demonstrates the relevance and capabilities of a CGMA as a trusted finance and
business strategist. The Competency and Learning website provides access to online courses and resources to assist future risk leaders improve their skills and knowledge on risk management.
Enhance your skills and knowledge at competency.cgma.org
CredibilityBrings instant respect
A true business partner
A passion for the utopia of balanced risk/reward
business approach
integrity, ethiCs & values
In every aspect of their role
Always focused on doing the right thing
Integrity at all times; the standard bearer
for what is right
business model
Purpose, culture values
Courage
Courage of convictions
Able to communicate in a balanced and considered manner
CommuniCationAt all levels
To all audiences
Crisp, clear, distils
With impact and influence
© 2015 Korn Ferry. All rights reserved.
FiGure 2: What are the qualities of a risk leader?
Learn more about risk leadershipSee the full Tomorrow’s Risk Leadership guide and toolkit at cgma.org/riskleadership
Read more about the current risk landscape, risk oversight and the importance of risk leadership in organisations at cgma.org/risklandscape
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