Page 66 - IRMSA Risk Report 2021

Considering the above, the following four risk management competencies must be demonstrated:

RISK MANAGEMENT FOCUSED RISK
STRATEGY CONVERSATION
A clear risk management strategy
is essential for effective risk The competence to facilitate a
management and the competence focused risk conversation that
to create one is therefore core. Truly
effective risk management practices leads to a good decision is more
are not overly process-oriented, effective than risk registers
bureaucratic, and complicated and meticulously and laboriously
may simply be concepts of mindset updated for each board meeting.
and approaches to leading and
conducting business.

EFFECTIVE RISK AGILE DECISION
COMMUNICATION MAKING
Risk professionals should think
beyond reporting all their activities Layers of process, reports, and
to the board. The competence to committees do not promote agile
concisely report the most important decision-making and oftentimes,
risks to achieving the most by the time the bureaucracy
important goals is needed. The decides, the time for making a
ability to practice good scenario- beneficial decision may be long
planning, coupled to an emerging gone. The ability to make good
risk framework, can enable decisions quickly at the lowest
organisations to focus on strategic level in the organisation where
risks that can materially impact the a well-governed decision can
oranisation, as well as emerging be made is another core risk
risks in a constantly changing management competence.
environment (risk context).
Success in managing risk requires a clear definition of risks, a proper definition of victory, and clear understanding of the events that
could hinder or help the achievement of victory.

Effective conversations about actual risks will enable risk management to deliver on its purpose. The time is right to document less,
discuss more, make better decisions, and implement bolder strategies.

Effective risk managers are not mere facilitators of a process. They
are the ultimate integrators of risk information and influencers of
influencers. They provide all decision-makers across the organisation
with the optimal set of risk information on which to base their
decisions.
4.4 SPECIFIC COMPETENCIES TO DELIVER THE PROMISE OF
RISK MANAGEMENT

This section is written to guide readers who desire real strategic value from risk management. Given the space constraints, the topic
cannot be covered exhaustively, but it is hoped that what is discussed would serve as a catalyst for you to take stock of where you
stand, individually or as an organisation, and determine the actions you are going to take to transform and become competent and
confident in the practice of risk management.

Competencies are the knowledge, skills, abilities, and behaviours that contribute to individual and organisational performance.
Knowledge is information developed or learned through experience, study, or investigation. Skill is the result of repeatedly applying
knowledge or ability. Ability is an innate potential to perform actions or tasks. Behaviour is the observable reaction of an individual
to a certain situation. An organisation, public or private, that collectively has the knowledge, skills, abilities, and behaviours can be
termed capable.

Capability is not easy to copy in a world where copies abound and is a
source of real and sustainable competitive advantage.

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