It takes a certain kind of individual to be successful as a risk manager in the business and corporate world and this article will be taking a look at some of the essential skills modern risk managers must possess to be masters of their craft.
#1 – Analytical Thinking
A good portion of the risk management process is about analysing facts and data and this takes an analytical mind. Some people simply cannot focus on processes like this while others seem to be gifted with amazing analytical skills and immense powers of concentration. Analytical thinkers generally make the best risk managers.
#2 – Problem Solving Skills Are a Must
Risk management is often about problem solving. You recognise a potential area of risk or a flaw in the operational process and you must be able to come up with the best solution, as quickly as possible, to prevent the flaw from becoming a full-blown problem for the company. Problem solving skills and the ability to think on one’s feet are essential to effective risk management practices.
#3 – Be Able To Take Full Advantage Of Risk Management Software
Big businesses and corporations will often have powerful risk management software onboard. Therefore, the risk manager needs to be able to take full advantage of risk management software for professionals. It will not only be expected but the software provides numerous advantages to the risk manager and has been designed to actually make their job easier, more proficient and more streamlined. Risk managers need to know their way around risk management software.
#4 – Knowledge Of Business Finances
While many components come under the risk management umbrella, one of the most important areas of risk for any business is that of financial risk. While a risk manager is not expected to become a business accountant, the more understanding they have of business finances, the better they will understand the financial risks the business could end up facing and the more proactive they’ll be in mitigating financial problems.
#5 – The Ability To Conceive Contingency Plans
Not all risks can be avoided and sometimes it’s necessary to formulate contingency plans that can be put into play should the company encounter a major issue of some nature. Part of the risk manager’s skill set should be the ability to create contingency plans that are effective and maintain business continuity.
#6 – Relationship Building Skills
The risk manager’s role is far from being completely autonomous. Risk managers regularly have to interact with business owners, directors, employees, governing bodies and even authorities. It’s vital that a risk manager has (or develops) good interpersonal skills and can form positive relationships with everyone involved. Liaising with others is an integral part of the ongoing risk management process and it’s important for risk managers to seek feedback from everyone who works in the company in order to reduce risk.
#7 – Must be Able To Handle Pressure
If a problem arises, the risk manager is going to be under the pump to come up with a solution and quickly. The risk manager will also need to be ready and able to deal with a possible barrage of questions from owners and management. One of the essential character traits a good risk manager needs to possess is the ability to work and perform under pressure, because pressure situations will arise that often depend on the risk manager to resolve.
#8 – Leadership Skills Are An Essential Quality
The risk manager has to take the lead when it comes to all things risk management and if there is a risk management team involved, then leadership skills are even more necessary. Your staff and all of the employees in general will be depending on your leadership skills, along with your ability to manage a team and manage the risk management processes effectively.
A good mix for an effective leader is to gain the respect of those they work with, while at the same time maintaining friendly relationships. A leader should never be a tyrant but rather someone people trust and look up to.
These are some of the essential skills a competent risk manager must possess to succeed as a risk manager in the corporate world.