This article looks at the evolution of risk management and its impact on risk manager recruitment.
Against a backdrop of globalisation, where digital pressure competes with the fear of being disrupted, where the level of regulatory constraints (RGPD, prevention of corruption, duty of vigilance and identification of third parties, conflicts of interest, etc.) is increasing and the need to take account of environmental, social and governance (ESG) issues is becoming unavoidable, we can see that risk is at the heart of the transformation of society with the environmental, social and societal crisis.
Companies that want to prosper in the long term must therefore embrace risk at its roots, in all its meanings: we can see that the role of risk manager is expanding, with a very cross-functional scope of intervention and influence in support of the business.
1. A job as technical as it is human
It's a job that calls for project management, analytical and summarising skills, as well as people skills. In fact, a quick look at the main tasks of a risk manager shows that it requires a very complete, even complex profile, with three main areas of activity:
- Identifying and mapping risks, assessing them and then ensuring their prevention, financing their impact through insurance - or not, controlling and managing risks (acceptance, transfer, reduction or circumvention), not forgetting the need to define the company's continuity after the shock.
- Acting upstream by helping to spread a risk culture internally and communicating risks externally
- Reporting, steering and monitoring risks.
It is becoming essential to have a global - rather than siloed - approach to risk in order to coordinate its management and implement a policy that aligns the interests of all parties in the interests of greater resilience.
Managers - who are still ultimately responsible - are increasingly opting for an expert to assist them in this very cross-functional role, where mathematical rigour combined with charismatic pedagogy will enable them to anticipate and prepare for the unforeseeable.
2. Risk management: a fast-growing and increasingly important function
Companies are constantly confronted with risk - whether liability or damage - and are turning to new technologies to deal with it. This is why data science is becoming increasingly important to the performance and success of the risk manager function. While all companies now know how to collect data, being able to analyse it, map it, draw assessments from it, set acceptability thresholds, anticipate changes and estimate costs is a real source of performance for the company.
In addition to financial, legal, tax, operational, fraud and environmental risks, there are now cyber security, geopolitical and international regulations. CSR requires the integration of ESG issues, making social and environmental risks, including the ecological energy transition, unavoidable. This explains the rise of risk managers in the corporate hierarchy: 44% report to the CEO and 31% to the CFO, according to AMRAE. As a result, risk management is becoming increasingly important on executive committees.
3. The risk manager helps to create value
Seeing risk management as a creator of value distinguishes visionary companies from others. This divide is evident among our clients when discussing the role and scope of the risk manager's functions. Some are convinced that the risk manager contributes to the company's performance, profitability, competitiveness and sustainability, while protecting its image and reputation. Others see it only as a cost centre and a set of regulatory obligations.
Secondly, the ideal risk manager is a conductor with skills in law, finance and business. He is also an engineer or geek capable of modelling and challenging risk models. They know how to analyse, present and convince a Comex. Equipped with common sense and rigour, they develop standards adapted to the company's risks. His charisma makes it easy for everyone to adopt them. Their long-term vision enables them to anticipate new risks arising from legislative or sectoral developments. He is also a shrewd calculator, capable of taking calculated risks. As a whistleblower, he is strategic, tactical and possesses ethical leadership.
Finally, finding these exceptionally versatile people is not easy. They need to have the necessary skills and understanding of the sector. This makes the search more complex. At the same time, it's crucial to ensure that the candidate fits in with the company's culture. This is where a headhunter, combining consultancy and recruitment, becomes invaluable. Their intervention really makes a difference.
The trajectory and positioning of the risk manager function are on the rise. Competition to attract the best talent will only increase. Giving the recruitment of this complex position the importance it deserves is crucial. In the long term, it becomes a fundamental asset. It helps to develop a pragmatic and effective risk culture. A culture that creates value and is aligned with the company's strategy. It is also aligned with the company's social purpose and interest.
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