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Become a

more effective

strategic risk

adviser

By Andrew Harding, FCMA, CGMA

t is no secret that business leaders opportunities to enter new markets or These tools include:
value certainty. Yet, in the past 2½ create new product lines. This may be y The Risk Heat Map and
years alone, they have had to grapple obvious to us, but something of which our Communicating Risks Using a Heat
with considerable change — and we colleagues and business partners should Map, which are designed to help you
Ihelped lead them and their be reminded. review risks across your business and
organisations in navigating the disruption As core members of businesses, operating model.
and uncertainty. From managing governments, and nongovernmental y The CGMA Horizon Scanner and CIMA
COVID-19’s disruptive impacts to organisations, we play a pivotal role in Strategic Scorecard, which will help
mitigating inflation-related risks and providing nonfinancial and financial with scenario planning, addressing
enhancing supply chain resilience, it has management information to drive strategic issues, and improving your
been a bumpy ride, and one that is set to business performance, develop strategies, business strategy.
continue. and influence decision-making. Having y A Leadership Guide for the Risk
As accounting and finance such a rich understanding of what drives Leader and ERM Insights for the
professionals, we have long focused on our organisations, and their future Finance Risk Leader, which are great
assessing and managing financial risks. strategic initiatives, is the first step resources to enhance and expand
However, the “perfect storm” of global towards becoming an effective your risk management skills and
public health, geopolitical, and participant in broader, more strategic competencies.
PHOTO BY STEVE FORREST/STEVE FORREST PHOTOGRAPHY
climate-related risks we are seeing today organisation-wide risk management As accounting and finance
is pushing our profession to expand its processes. professionals, we have a great foundation
remit — in order to help our organisations To help you get started, take a look at of skills and competencies that can be
improve their risk management our comprehensive Risk Management applied to strategic risk management. The
capabilities. This means that, as a Toolkit, which contains 20 practical tools key to our success will be linking our risk
profession, a paradigm shift in our and reports covering areas such as risk thinking to what drives our organisations’
approach to risk management is urgently assessment, risk oversight, and risk long-term success. The opportunity is
needed. management practices. The toolkit will there. The challenge will be grabbing hold
The very term “risk” often makes people enable you and your organisations to of it.
feel uncomfortable, and although risk enhance your understanding of emerging
management primarily focuses on risks and establish robust risk processes to Andrew Harding, FCMA, CGMA, is chief
managing downside risk, it is important to safeguard their future. executive–Management Accounting at
appreciate that risk also has an upside. In addition, we have reviewed and the Association of International
This upside involves seizing new updated some of our existing risk tools Certified Professional Accountants,
opportunities that can arise from to enable you to confidently lead your representing AICPA & CIMA.
disruption or uncertainty, such as organisations on their risk journey.

6 I FM MAGAZINE I August 2022