Boardroom door is open to risk managers as concern for global risks grows

Richard Sermon, chairman of the Chairman's Forum, warned that cyber, supply chain and reputation were considered the most challenging risks but that the "growing evidence for the interconnectivity of global risks" was also a big concern for chief executives.

Sermon struck an optimistic note on how companies are approaching these changes, however. "There is a positive feeling, for once, among boards about this issue…. there is a feeling that we're looking ahead of the game instead of always reacting to a crisis. We are anticipating change."

He added that these changes are creating opportunities for risk managers. "The need for boards to have a more qualitative discussion about risk is self-evident…This means more air time for risk professionals at the board level." 

Picking up on Sermon's comments, Julia Graham, Airmic's deputy CEO, agreed that today's risk managers have a unique chance to raise the status of their profession. In her closing comments, she said that business trends and regulatory trends are aligning to create the "perfect conditions" for risk professionals to add value.

"The growing complexity of today's business environment and the ever-increasing demands placed on boards mean that senior management are taking a growing interest in risk. CEO's are under pressure from regulators to take ownership of risk management and are turning to risk professionals for advice as a result." 

Ms Graham said that this is a huge opportunity for the risk community to increase their contribution. "Boards are reaching out to risk professionals but risk professionals must also reach out to their boards. It's about risk managers adding value to the business and transforming the profession."

Ms Graham said the conference was designed to give risk managers the tools to be effective at a more strategic level. "We want our members to realise that the boardroom door is now open to them, but it is our job to ensure they have the skills and confidence to walk through that door. That is what today is about."