Page 40 - RMAI Bulletin July - September 2021

RMAI BULLETIN JULY TO SEPTEMBER 2021

which we accept a Risk Manager should have or should risk professional or CRO must know to listen and
he/she want to become successful in risk management to inspire people. These are two skills that any
career. good leader must pursue.
a. Financial Acumen f. Good communication and presentation
Having financial acumen is more than just skill
understanding numbers. The ideal risk They must also be able to convey complex
professional must comprehend and master the financial products and risk management concepts,
different financial indicators which are tied to the practices, and processes to senior, less technical
firm’s assets, business lines, markets, regulations audiences, including front office directors, senior
and stakeholders. Mastering numbers empowers management and the board of directors. Strong
a risk professional to make sound and quick interpersonal and communication skills are
decisions. imperative for risk managers to be successful.

b. Analytical skills and an eye for detail g. Holding academic credentials in Finance
In our experience, whatever the category of risk and Risk
we specialise in, as a risk manager we must When scanning a candidate’s resume, firms seek
possess analytical skills and have an eye for detail. risk professionals who have strong academic
It is therefore crucial that you keep focus on both finance or/quantitative credentials. MBA’s in
the broad aspects of your work (e.g. your firm’s finance, ideally having rigorous courses loads in
business objectives, your department P&L and the quantitative finance, from top universities. This
firm’s potential top risks) but never losing sight of always gets the attention of recruiters and hiring
smaller details that happen on the day to day. managers.
c. Industry and Market Knowledge h. Strategic thinking capability
By understanding well, the industry and market Solid risk managers must be forward-looking and
where the firm operates, the risk professional will strategic minded, having the ability to understand
be much better equipped to identify the posing potential risks for the firm, both at departmental
risks. Above all, the risk professional will have a
level as well as in a wider firm perspective.
better notion on how to rank, score and group any
potential risk for the firm at a given time. An i. Endurance to regulation
experienced risk professional or potential CRO Risk management in banking has been
should be proficient in a specific discipline, such transformed over the past decade, largely in
as market risk, credit risk or operational risk, yet response to regulatory requirements following the
with a good knowledge of broader risk issues and global financial crisis. Also risk management will
regulatory developments. experience more changes in the next 10 years.
d. Ability to endure and work under stress j. Networking ability
Some people are essentially emotional dealing In the fast paced, risk professional should
with stressful situations, while others can keep constantly make to put effort of connecting with
focus and respond with their rational assessment. other fellow professionals.
It is a fact that two individuals with the same
training, exposed to the same stressful situation, General guidelines for Risk Management
can have totally different reactions and hence a Best Practices in emerging economies
different resulting performance. Successful risk A tentative set of guidelines would include the
professional must be able to work under pressure
as quick decisions will need to be taken in high following points:
Y Regulators should work together with market
stressful times.
participants to establish and enforce risk
e. Technical skills, negotiation skills and management rules. Banks and insurance should be
ability to influence people encouraged to discuss common policies for risk
The ability of influencing people is also a very management, and joint regulators in their efforts
important trait but not everyone has it. The ideal to minimise systemic risk.

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