If there’s one overall attribute of an effective ERM professional, it’s patience.
It can be demoralizing to constantly explain and explain risk concepts, just for it all to seemingly fall on deaf ears. Depending on where the company is starting, it can seemingly take years for the business to fully grasp and embed risk into its daily operations and decision-making, which is one reason why strong emotional intelligence is so important.
Fortunately, with diligent effort, persistence, and (yes) patience, this barrier can be overcome and represents a monumental achievement for a risk professional.
I recently had the pleasure of speaking with one such professional who struggled to help executives and business units in his company understand the concept of risk appetite. However, one day, after what seemed like an eternity, it clicked.
Below are key points in our conversation. However, the time watching entire interview will be well spent…and inspire you to keep striving to help your company understand and ultimately utilize ERM as a tool for achieving objectives.
- 0:00 – Introduction
- 1:15 – The challenge and journey to understanding AND applying risk appetite.
- 4:45 – The day when the business understood and began asking if more risks could be taken.
- 7:30 – Was the business coached, or did they just come to ERM for help one day, or both?
- 11:50 – The business engaging with ERM vs. ERM engaging with the business.
- 15:00 – Navigating the inevitable conflict in priorities between senior executives and the business.
- 18:30 – The domino effect of business units understanding AND applying ERM concepts.
- 21:30 – Key takeaways – Persistence pays off. Keep investing in relationships. Be helpful without being pushy.
For a great primer on the concept of risk appetite, check out this previous article and this interview with Hans Læssøe.
Thanks to Ray for his time and sharing his inspiring story of his journey as a risk professional. We both hope you find it motivating and encourage you to always maintain a growth mindset and meet the company where they are.
Do you have a similar transformational story of your company’s ERM journey to share?
If so, we invite you to join the conversation on LinkedIn or send me a DM on LinkedIn.
On the flip side, if you’re struggling to help executives and business units to understand much less apply concepts like risk appetite into its decision-making, reach out so we can discuss your situation.
Featured image courtesy of Joshua Earle via Unsplash.com
