The Institute of Risk Management (IRM) has released new guidance on hiring for the most senior risk positions. The organisation also remarks on a shortage of candidates for senior level positions and calls on organisations to ensure that their professional development schemes and succession plans nurture sufficient talent for the future.
In addition, the IRM is introducing a new advisory service to provide candidate assessment support for organisations around the world seeking to make top level risk appointments.
The new guidance was officially launched at the IRM’s annual Risk Leaders Conference where a panel of experts discussed recruiting and career development issues for the profession as a whole.
The guidance is based on the IRM’s professional standards and is aimed at organisations of all types seeking to recruit a Chief Risk Officer (CRO), perhaps their first, or to make other senior risk appointments. By CRO is meant the most senior executive in the organisation with responsibility and accountability for risk management, whatever their actual job title.
Stipulated by regulation
In some sectors, particularly financial services, the role of the CRO is stipulated by regulation. Other organisations have come to see the merits of such an appointment as part of a process of maturing their risk management posture, ensuring that it adds value to the business.
The document affords guidance on understanding the context of the CRO appointment, identifying key skills and attributes, the recruitment process itself and how to assess candidates.
IRM has worked with recruitment experts to combine an understanding of risk management expertise with guidance on how to go about a modern recruitment process.
Effective risk leadership
Socrates Coudounaris CFIRM, chair of the IRM, explained: “Effective risk leadership is an essential component of a healthy risk culture. Corporate governance codes around the world have underlined that you must have the right people and resources in place. Organisations face new risks and opportunities associated with digital disruption, geo-political and economic volatility, environmental responsibilities and social change. Ultimately, the responsibility for risk management rests with the Board, but that Board needs to have confidence that its delegating day-to-day responsibility to a suitably competent person who’ll also be responsible for giving the highest quality advice to support risk-based decision-making.”
Coudounaris added: “Risk management is changing fast and CROs must be up to the challenge. We’re delighted to be able to offer practical guidance and advice that will aid in the recruitment process, and especially so given the overriding importance of this role.”
Recruitment expert Ulrich Seega, the main report author, commented: “The aim of this guidance is to bring together today’s Best Practice in recruitment with the specialist technical knowledge about risk management offered by the IRM. Organisations are looking for CROs who display not only technical expertise at the highest level, but also the appropriate behavioural characteristics relating to matters like change and leadership. This guidance will help organisations define what they need and how to go about finding it.”
*Download the document in full here: https://irmcomms.wufoo.com/forms/ma742vz0dia4ef/