Risk professionals increasing strategic influence amid global volatility

Over the past decade, risk management has steadily moved up the corporate agenda becoming a recognised pillar of business strategy. According to the 2024 FERMA survey, the proportion of risk professionals who partake in board and executive committees surged to almost a half – up from one third in just two years.

Yet today’s extraordinary geoeconomic volatility – marked by conflict, supply-chain disruption and technological change – is proving to be a catalyst for even greater recognition of the profession’s strategic value. It’s a moment of opportunity for the profession to prove its worth at the highest levels of decision-making.

Sarah Azarmgin, associate director enterprise risk management at Coca-Cola Europacific Partners, agrees that the current climate has accelerated recognition of risk’s strategic role. “Since the Covid pandemic, we’re contacted more often and brought into executive conversations earlier,” she says. “Volatility has made decision-making based on a solid understanding of risk more important than ever.”

For her, the integration of enterprise risk management into strategic planning enables companies to act more proactively: “When you’ve already thought through scenarios and built adaptability into your strategy, you’re better prepared for whatever happens next.”

For Isaac Wheatley, senior business continuity and resilience analyst at lawfirm CMS, whose team recently developed a Risk Intelligence Programme to track geopolitical developments, this is where risk management’s value becomes tangible. “It allows leadership to make strategic decisions about growth opportunities with a clear understanding of the risks in different regions,” he explains. “Risk isn’t there to be a constraint – it can be leveraged as an opportunity.”

From technical expertise to strategic influence

Making the leap from technical to strategic influence can be one of the biggest challenges in a risk professional’s career. But for many, operational experience is the foundation of credibility at the board table.

Azarmgin reflects on her own journey: “I started in very operational roles, supporting manufacturing sites. That experience is vital to understanding strategy as you first have to understand what’s happening on the ground. You build trust when you can say, ‘I’ve been there, I know how this works.’” Without that grounding, she warns, risk managers may struggle to interpret the real issues beneath the data.

Arantza Moleres, insurance and claims manager at Impala Terminals, echoes this sentiment, and argues that an important step toward strategic impact is learning to speak the language of the Board. “Translate technical concepts into insights that link directly to business outcomes,” she advises. “When you show how a risk decision affects profitability or value creation – and quantify it – the conversation changes completely.”

For Latitia Bogle-Brown, enterprise risk and analytics manager at DLA Piper, credibility is earned through consistent delivery and the ability to translate complexity into actionable insights. “When internal stakeholders become advocates,” she notes, “the discipline gains reputation as a partner that brings clarity and supports decisions.”

Three capabilities stand out as essential for strategic influence: strong communication, stakeholder management and commercial acumen. Wheatley adds that combining those skills is important for navigating organisational dynamics. “You need to understand what motivates executives – their pressures, their incentives – and tailor your message accordingly,” he says.

Artificial intelligence: a double-edged sword?

Artificial intelligence (AI) is reshaping risk management, being both an opportunity to elevate the function, but also as a source of new complexity – and a risk to be managed.

Moleres highlights the dual nature of AI: “It enhances risk identification, modelling and predictive insight – but it also creates risks of its own, from data bias to operational dependency and regulatory issues.” Wheatley agrees, but ultimately sees AI as a chance to “free risk professionals from technical work so they can focus on strategic thinking.”

Yet for Azarmgin, there’s a cautionary note. “AI might replace some of the operational roles where people traditionally gained their grounding in risk,” she warns. “If new entrants don’t get that early exposure, we risk losing that practical understanding that’s essential for decision-making.” She also worries about over-reliance: “AI can’t replicate human experience or instinct – that gut feeling that tells you when something isn’t right. You still need a human ‘overwatch’.”

Bogle-Brown sees the future of AI in risk management as one of partnership rather than replacement. “AI can streamline fact-finding and evidence gathering, but independent judgement remains crucial,” she says. The key is to approach AI strategically – combining its analytical power with human insight, and ensuring practitioners are upskilled to use it effectively. Azarmgin agrees: “If we want to use AI for decision-making, we need to upskill. It’s intuitive at first, but to use it strategically, you need the right training.”

The future: risk as a strategic partner at the top table

Looking ahead, the risk profession’s evolution toward greater strategic impact is well underway – but there are still cultural and perceptual barriers to overcome.

“Risk understanding at board level has improved, but is still too often misunderstood by decisionmakers at other levels of the business,” says Azarmgin. “It can be seen as negative, something to avoid, rather than as a source of opportunity. Until that perception changes, it will be harder to fully embed risk thinking into strategy.”

She sees progress, however: “Slowly but surely, we’re getting there. In five or ten years, I’d like to see risk fully embedded – every big decision having a risk scorecard and being risk-informed from the start.”

Moleres shares a similar vision: “Risk professionals should be sitting alongside CEOs and CFOs as part of the executive committee, not brought in at the end as a control check. Risk should be discussed in the same way as revenue or earnings – as part of value creation.”

For Bogle-Brown, the goal is for risk to be recognised as the organisation’s trusted advisor, offering a holistic view of how strategic options align with the organisation’s appetite and objectives.

Airmic continues to play a pivotal role in this evolution. Its education programmes, forums and guidance are helping members build confidence, challenge outdated perceptions and step into more influential roles. Moleres believes Airmic’s advocacy is “helping shift the culture so risk is recognised as a driver of strategic thinking rather than a compliance burden.”

Wheatley agrees now is a critical moment: “In a world that’s moving faster and becoming more unpredictable, executives are hungry for structured, informed perspectives. That’s exactly what good risk management provides.”

As global volatility continues to reshape the business landscape, risk professionals stand at a crossroads – uniquely positioned to guide organisations through uncertainty and seize opportunities. By combining operational understanding with strategic awareness, leveraging AI responsibly, and challenging old perceptions, the profession can turn today’s turbulence into a defining moment of leadership.

Airmic’s Shadow Board is a group of six rising stars from its membership. It represents the voice of younger generations of Airmic members to the Association’s main Board of Directors.