Page 40 - The Insurance Times January 2022

p) Reputational e. Technical skills, negotiation skills and ability
€ International companies in emerging economies to influence people
are prime candidates for adverse publicity. This The ability of influencing people is also a very important
may be vindictive. trait but not everyone has it. The ideal risk professional
or CRO must know to listen and to inspire people. These
Qualities of Risk Management are two skills that any good leader must pursue.
Professional in emerging economies f. Good communication and presentation skill
With the consistent shifting and evolving regulatory and They must also be able to convey complex financial
technological landscape, following are list of skills which we products and risk management concepts, practices, and
accept a Risk Manager should have or should he/she want processes to senior, less technical audiences, including
to become successful in risk management career. front office directors, senior management and the
a. Financial Acumen board of directors. Strong interpersonal and
Having financial acumen is more than just communication skills are imperative for risk managers
understanding numbers. The ideal risk professional must to be successful.
comprehend and master the different financial g. Holding academic credentials in Finance and
indicators which are tied to the firm’s assets, business Risk
lines, markets, regulations and stakeholders. Mastering
numbers empowers a risk professional to make sound When scanning a candidate’s resume, firms seek risk
and quick decisions. professionals who have strong academic finance or/
quantitative credentials. MBA’s in finance, ideally
b. Analytical skills and an eye for detail having rigorous courses loads in quantitative finance,
In our experience, whatever the category of risk we from top universities. This always gets the attention of
specialise in, as a risk manager we must possess recruiters and hiring managers.
analytical skills and have an eye for detail. It is therefore
crucial that you keep focus on both the broad aspects h. Strategic thinking capability
of your work (e.g. your firm’s business objectives, your Solid risk managers must be forward-looking and
department P&L and the firm’s potential top risks) but strategic minded, having the ability to understand
never losing sight of smaller details that happen on day potential risks for the firm, both at departmental level
to day basis. as well as in a wider firm perspective.
c. Industry and Market Knowledge i. Endurance to regulation
By understanding well, the industry and market where Risk management in banking has been transformed over
the firm operates, the risk professional will be much the past decade, largely in response to regulatory
better equipped to identify the posing risks. Above all, requirements following the global financial crisis. Also
the risk professional will have a better notion on how risk management will experience more changes in the
to rank, score and group any potential risk for the firm next 10 years.
at a given time. An experienced risk professional or j. Networking ability
potential CRO should be proficient in a specific
In the fast paced, risk professional should constantly
discipline, such as market risk, credit risk or operational
risk, yet with a good knowledge of broader risk issues
and regulatory developments.

d. Ability to endure and work under stress
Some people are essentially emotional dealing with
stressful situations, while others can keep focus and
respond with their rational assessment. It is a fact that
two individuals with the same training, exposed to the
same stressful situation, can have totally different
reactions and hence a different resulting performance.
Successful risk professional must be able to work under
pressure as quick decisions will need to be taken in high
stressful times.

40 The Insurance Times, January 2022