Why every leader needs to be a risk manager

In this article you will find out why every leader needs to be a risk manager...

Why every leader needs to be a risk manager

Who comes to mind when you hear the title Risk Manager? 

Typically, this is the person who purchases the corporate insurance program, conducts health and safety training, handles claims, or manages IT / cybersecurity logs, training and threat responses. 

Office has grown exponentially over the past 20 years. It's more sophisticated, more responsible, and capable of delivering solutions to organizations facing a long list of things of increasing complexity, including labor compliance, occupational safety, privacy and financial regulations, and supply chain interdependencies. , Business continuity planning, technology introduction, third party responsibilities and social, economic and political changes. 

As such, the proactive risk manager leads with incredibly broad and acute perspectives to identify risks across the company, then analyze them and prioritize the context of your own organizations and people. 

The person in this position was never intended to be an individual or the sole custodian of knowledge regarding risks, quantification methods, and risk mitigation solutions. 

Isolated risk management is inherently a major risk because the responsibilities are too numerous and complex, and the role depends on diversity and inclusion. Risk managers are the ones who recognize this mantra and work towards aligning organizations with this mantra: "Every manager is a risk manager". 

Tell me If your organization has a formal Enterprise Risk Management (ERM) committee, its members likely include risk and environmental health and safety (EHS) managers, the CFO, the CIO, the facility / safety manager, and various lawyers.

It's time to broaden the perspective of the risk managers in your company; HR, marketing, PR and operations leaders are the most well-known leaders in risk management today, even without standard professional certifications. 

But they offer valuable real-time insights and experiences. for emerging business opportunities and threats, making them more suitable for risk identification, risk mitigation planning and control. 

Reconsider who is on your team and what risks you are measuring Executives who are resolutely at the forefront of organizations' COVID19 response strategy, government attitudes, fair compensation, performance structuring and fair work practices, your job is clearly more than a series of inputs into the annual risk register. 

People and programs that are the direct result of decades of global social justice, civil rights, and economic pressures. In the midst of growing unrest, large and small companies were confronted with criticism and brand damage because they had an apparent and alleged lack of inclusion at all levels. 

Statements and guidelines without meaningful application that left inappropriate behavior and microaggressions in the workplace uncontrolled. 

However, because HR managers have historically not been viewed as risk managers, some companies missed opportunities to fully identify and quantify the risks involved and to take action before damage occurred. 

The same applies to risks arising from marketing / PR functions. at the table when "that decision" was made. The proactive risk manager cannot afford to wait to be invited to this table; Bring these leaders to yours. 

Recognizing HR and marketing managers as risk managers can make quantitative and qualitative results from culture, employee engagement and DEI surveys more visible. 

EEO1 reports; Compensation and promotion parity studies; Troubleshooting social media; Consumer ratings; and public relations crises. Risk reassessment and reassessment. 

A direct benefit of bringing more appropriate people to the table is the ability to reassess your previous risk records.

Proactive risk managers don't work in bubbles, so it is very likely that HR, marketing / public relations and operations managers have already been tasked with identifying key risks such as employee diversity, succession planning, talent shortages, millennial and corporate engagement, Generation Z and the disruption of the supply chain, but it's time to freshen up, quantify and prioritize.