“Risk is not static, so those who hold risk practitioner positions should be accountable for the outcome of risk.” For more information visit www.theriskofyou.com What do you consider the main challenges currently faced by the financial industry and how can risk enable the sector to overcome them? “The financial industry is facing a multitude of challenges including the complex red tape of regulation, the emergence of disruptive payment systems such as FinTech and cryptocurrency, not to mention cybersecurity, data, ESG, and geopolitical and economic uncertainties, but I think the biggest challenge of them all is people. “People and the actions of the people operating these companies either lead to a boom or bust. To overcome these challenges, the correct knowledge of risk needs to be acquired and applied with dynamism. “Risk is not static, so those who hold risk practitioner positions should be accountable for the outcome of risk. I have this radical idea that the roles of Chief Executive Officers and Chief Risk Officers need to be reversed so that CROs are the leaders of companies supported by CEOs. The reason for this idea is that a good CRO understands how the different parts of their company works due to the access and insight risk gives them, which may be far more reaching than that of a CEO.” How can both financial institutions and the wider business community leverage risk to not only survive but thrive during economically turbulent times? “Leveraging risk must be a daily practice which puts you in a place of resilience to combat the stresses and periods of financial turbulence. Essential to this is the ability to adjust your roadmap and develop the art of dynamism, which means you must flow with the peaks and troughs in your business’ ecosystem and outside of it. “Understanding how the world works in relation to your purpose is key, as is knowing the different risk types common to your enterprise. Work out the obvious and hidden threats and issues, know how to find opportunities and implement the benefits realisation plan to convert these opportunities, whilst knowing how to adjust in good times and hard times.” Do you believe the success of an organisation is dependent on its approach to risk? “Without a doubt, YES!” Finance Monthly. Banking & Financial Services 55
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