VOL 04 I ISSUE 12 I 2024 Leading Through Uncertainty The Role of Leadership in Risk Management Beyond the Horizon Proac ve Risk Management in Today's Business Environment Maninder K Bahra’s Journey of Innovation and Risk Mitigation in a Tech-Driven Era Risk, Resilience and Success: Maninder K Bahra Former Chief Control Officer HSBC and Barclays Bank The Most Significant Leaders in Risk Management 2024
Risk more than others think is safe. Dream more than others think is practical.
Editor’s Note n risk management, identifying influential I leaders is crucial for understanding industry trends, innovation, and best practices. In 2024, the field witnessed the emergence of several figures whose contributions have significantly shaped the discourse and practices in risk management. These leaders have not only demonstrated exceptional expertise but have also exhibited a visionary approach towards addressing contemporary challenges. The selection of The 10 Most Significant Leaders in Risk Management, 2024 reflects a diverse range of expertise and perspectives within the field. These leaders have made substantial contributions across various sectors, including finance, technology, healthcare, and environmental sustainability. Their influence extends beyond organizational boundaries, shaping industry standards and regulatory frameworks. Among the notable themes highlighted by these leaders is the importance of proactive risk identification and mitigation strategies. In an increasingly interconnected and volatile world, traditional approaches to risk management are no longer sufficient. These leaders advocate for adopting agile methodologies, leveraging advanced analytics, and embracing technological solutions to anticipate and address emerging risks effectively. Ethical considerations and sustainability principles feature prominently in the discourse led by these influential figures. Recognizing the interconnectedness of global challenges, they emphasize the need for responsible risk management practices that prioritize long-term sustainability over short-term gains. These leaders play a pivotal role in fostering a culture of risk awareness and resilience within their organizations and broader communities. Through thought leadership, mentorship, and advocacy, they empower stakeholders to navigate uncertainty with confidence and adaptability. AnishMiller Risk Managing Leaders
C o n t e n t s Articles Prole Leading Through Uncertainty Thabile Nyaba The Role of Leadership in Risk Management Champion of Sustainable Future through Risk Management 18 22 08 Beyond the Horizon Proactive Risk Management in Today's Business Environment 26 CXO Effects of Modern Leadership Approaches in the Dynamic Business Arena -by Akinlawon Fayokun 16 Maninder K Bahra’s Journey of Innovation and Risk Mitigation in a Tech-Driven Era Risk, Resilience and Success:
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April, 2024 Pooja M Bansal CONTENT DESIGN SALES TECHNICAL FOLLOW US ON WE ARE ALSO AVAILABLE ON CONTACT US ON Editor-in-Chief [email protected] SME-SMO
Company Name Brief Dr. Karen Hardy Founder and CEO Dr. Karen Hardy expertise has cut across international trade, small business, technology, trademarks/patents, security, and data for a national Census. Dan Rhodes Senior Director, Legal & DPO Dan is a solicitor with extensive experience in technology licensing, intellectual property, Generative AI, mergers and acquisitions, distribution, strategic alliances and global partnerships. Granicus www.granicus.com Strategic Leadership Advisors LLC www.setyourstrategy.com Carolina Leao de Moura Chief Risk Officer Carolina is an experienced business and risk executive with public and private sector experience. Expertise in the areas of Enterprise Risk Management, Governance, Business Continuity, Operational Risk, Issue Management, Policy, Compliance, and Security. University of Ottawa www.uottawa.ca Fazal Mohammed Head of Ops Risk AM Accomplished Operational risk manager offering expertise across the capital markets space with industry leaders in the banking and reinsurance sectors. Phoenix Group www.thephoenixgroup.com Jeffery J. Weaver EVP & Chief Qualitative Risk Officer, Emerging Risk, Climate Risk Mgmt. Jeffery is a senior finance and risk management executive, experienced corporate board director and advisor with demonstrated expertise in enterprise & financial risk management. KeyBank www.key.com Featured Person Stephen Tonna Head of Risk Modeling and Model Governance, Asia Pacific Stephen specializes in leveraging data analytics to solve complex business problems, streamline operations, and boost company performance. Mirea Raaijmakers Expert Partner Mirea is a seasoned and independent advisor, consulting various organizations and senior management on behavioural risk and transformation. Axialent www.axialent.com SAS ww.sas.com Maninder K Bahra Chief Control Officer Maninder works with Executive Committee members by supporting them to discharge their first line risk and control responsibilities, ensuring that portfolio of products and services are delivered with a customer centric focus. Citigroup www.citigroup.com Thabile Nyaba Chief Risk & Sustainability Officer Thabile is the Chief Risk & Sustainability Officer, aiming to create certainty in the lives of our personal, commercial and corporate clients, caring for what matters most. Old Mutual Insure Limited www.oldmutual.co.za Yaroth Chhay SVP & Head of Information Security Division Yaroth leads the cybersecurity governance, risk, and compliance (GRC) and privacy functions, ensuring the alignment of the bank's cybersecurity strategy with its business objectives and regulatory requirements. ACLEDA Bank Plc. www.acledabank.com.kh
Maninder K Bahra’s Journey of Innovation and Risk Mitigation in a Tech-Driven Era Risk, Resilience and Success: “ As a leader, Maninder stresses the importance of maintaining a level of professional curiosity and a learning mindset.
Cover Story Maninder K Bahra Former Chief Control Offcer HSBC and Barclays Bank
G lobal financial services are a thriving ecosystem brimming with opportunity and innovation. However, beneath the surface lies an intricate web of risk and compliance activities, demanding constant vigilance and careful navigation. In this robust ecosystem, Maninder K Bahra stands out for her fervent commitment to risk management, innovation, and excellence. Within the vast realm of financial services, where every decision reverberates across markets and economies, Maninder emerges as an expertise exemplum—As Chief Control Officer and Non-Financial Risk & Compliance Expert, having worked at Global Banks such as HSBC, Standard Chartered and Barclays; she manages the creation and implementation of risk frameworks tailored to the needs of this demanding industry. With a distinguished track record, Maninder is renowned for her ability to design and innovate solutions to complex risk and compliance challenges. From addressing conduct issues, to navigating the nuances of climate risk and SOX (Sarbanes-Oxley) compliance, she leads with precision and foresight. Maninder’s influence excels in strategy and implementation and is adept at nurturing credible relationships at the highest echelons of governance. Maninder fosters a culture of collaboration and accountability by bridging the gap between risk, compliance, and the wider organization. Maninder is fully committed to staying ahead of industry trends. Her thirst for knowledge is demonstrated through her completion of executive programs on blockchain strategy, and climate emergency at the Saïd Business School, University of Oxford. Her current interests center around the ethics of AI. Join in on a transformative journey as Maninder navigates the complexities of risk and compliance, leaving a lasting mark on the industry and shaping a future defined by resilience and integrity! Balancing Acts In her roles as Chief Control Officer and Non-Financial Risk Expert, Maninder has directed her attention towards managing risk outcomes across various lines of defense by ensuring alignment with desired objectives. “As Chief Control Officer, my aim is to aid the executive committee and business heads in fulfilling their first-line responsibilities to achieve positive outcomes for customers, clients, and stakeholders; across retail, commercial banking, and Wealth products” Maninder emphasises. A key aspect of her approach involves adopting an integrated risk perspective and collaborating extensively across all stakeholders including: COO, Operations, Technology, Risk and Compliance, and business lines, to address complex risk issues efficiently. “In my role as an NFR expert, oversight and constructive challenge are paramount. However, I also prioritise providing practical support to first-line Business Heads while leveraging my technical expertise to navigate regulatory requirements,” Maninder explains. By combining pragmatism with a deep understanding of regulatory imperatives, Maninder serves as a facilitator for businesses to effectively manage non-financial risks whilst simultaneously driving sustainable growth. The Collaborative Edge In navigating the intricacies of risk management, collaboration and diverse perspectives play a pivotal role, as emphasized by Maninder, who draws from her experience in both the second and first lines of defense. “Transitioning from designing regulatory frameworks in the second line to operating in the first line provided me with a deeper comprehension of commercial aspects and customer needs,” Maninder reflects. “ I strive to provide integrity in decision-making which can be backed with intel but also demonstrate sound judgment when needed.
Her adeptness at translating regulatory requirements into business-centric language fosters improved dialogue and execution across the organisation. This ability stems from recognising the importance of establishing common ground and approaching problems from various angles. “I found that my previous experience in the second line proved invaluable in bridging the gap between regulatory mandates and business objectives when I moved to the first line,” Maninder asserts. By leveraging her expertise, she facilitates smoother operations and enhances organisational resilience in the face of evolving risks. This collaborative approach accentuates the effectiveness of integrating regulatory compliance into business strategies, ensuring alignment with broader objectives and stakeholder interests. Building Stakeholder Trust In Maninder’s journey, a valuable lesson in managing Non-executive Director (NED) stakeholders emerged from a former line manager’s counsel; “It’s not only important to present your assigned paper to a non-exec committee but also to put yourself in their shoes and think about their position, listen intently and use as a learning experience in preparation for the next Committee meeting.” This advice underscores the significance of understanding stakeholders’ perspectives. Embracing an executive role, Maninder prioritsed thorough preparation, aiming to showcase methodologies/approaches followed, Challenge mechanisms applied, and areas requiring
attention; but also to anticipating NEDs’ inquiries and ensuring the team’s readiness to address them. “I wanted to pre-empt the types of questions that the NEDs would want to ask and the areas they would be interested in and ensure as a team we have prepared to address these,” Maninder explains. Staying ahead of the curve meant providing opinions backed by data from existing systems and controls. Effective engagement with the business ensured transparency, avoiding surprises and ensuring they were well-informed ahead of discussions. “It was important to have engaged with the business so that they were aware of the discussions. This aided in preventing surprises for them and ensuring that they were adequately briefed ahead of time,” Maninder emphasises. This proactive approach fosters confidence and enhances collaboration and transparency; aligning stakeholders and bolstering organisational resilience in navigating challenges effectively. Maninder’s experience underlines the importance of preparation, empathy and communication in managing diverse stakeholder interests at the executive level. Risk, Learning and Leadership As a leader, Maninder stresses the importance of continuous learning. “It’s important for me to adopt a level of professional curiosity and a learning mindset,” she affirms. Sharing acquired knowledge with the team is essential for fostering engagement and enabling them to understand how learnings impact their responsibilities. “It is equally important to share back with your team which engages them and to also help your team to interpret how the learnings can have an impact on the activities you/they are responsible for,” Maninder explains. Her fascination with blockchain technology sparked a journey of exploration into its potential applications in control design. “I was fascinated by the capability of the technology and how I could potentially utilise it in a control design environment,” she recalls. Implementing methodologies learned, Maninder leveraged blockchain use tests in her role as CCO to formulate hypotheses for automated control, encouraging her team to think innovatively. Recognizing the significance of climate risk within the enterprise risk framework, Maninder integrated this understanding into her risk management practices. “As a risk management expert, I felt a level of responsibility to ensure that I understood how climate risk forms part of the enterprise risk framework and particularly its cross-cutting nature across Financial and Non-financial risk,” she shares. This approach reflects Maninder’s commitment to staying abreast of evolving risks and incorporating new learnings into her professional endeavors. Tech-Forward Risk Strategies Maninder highlights the pivotal role of technology in risk management. Technology and innovation are absolute enablers for executing the implementation of risk and control frameworks. Despite the widespread use of Governance, Risk, and Control (GRC) systems. Their full potential currently remains mostly untapped, particularly in leveraging data for robust risk reporting. The emergence of generative AI presents new avenues for advancing nonfinancial risk management; with tech consultancies exploring opportunities to harness control and risk taxonomies for validation purposes. However, the adoption of these advanced tools must be approached with clarity of their impact on customers and broader society. “Of course, these advanced tools need to be used in a measured way, and the risks associated with their utilisation also need to be understood with depth. “ In the current times of global uncertainity, there's a laser focus on risk management practices as new risks emerge.
While regulatory frameworks on AI are developing I like using the four values set out by UNESCO, which lay the foundations for AI systems that work for the good of humanity, individuals, societies, and the environment” Maninder advises. Balancing innovation with risk mitigation is essential in maximizing the benefits of technological advancements while safeguarding against potential pitfalls. Embracing these advancements with a strategic and measured approach can revolutionise risk management practices, driving organisational resilience and success in an increasingly complex landscape. Driving Growth Responsibly Maninder emphasises the role of risk and control frameworks in fostering responsible business practices. “A shift in mindset is required. Risk and control frameworks do not exist to inhibit business growth and innovation; they exist to ensure that business is conducted in a manner that does not bring harm to customers and clients,” she explains. These frameworks serve as boundaries within which businesses operate, ensuring effective delivery of products and services while considering customer outcomes. In ambiguous areas, dialogue between relevant parties is crucial to ensure core elements are effectively managed. By embracing this perspective, organisations can navigate complexities whilst prioritising integrity, ultimately fostering trust and sustainable growth. Shaping Organisational Resilience Maninder observes the importance of integrating risk considerations into organisational culture, she states, “Culture is about attitudes and behaviours. By adding risk to the mix, we are talking about attitude and behaviours towards risk within an organisation,” she explains. This extends past risk frameworks to encompass the entire risk ecosystem, including: strategy, governance, and reward mechanisms. “The risk ecosystem in place covers the strategy—does it encourage certain risk-taking behaviors that are outside of the boundaries set? It covers the reward mechanism, governance, and oversight, as well as the effective implementation of risk frameworks,” Maninder elaborates. Aligning attitudes and behaviors with risk management objectives cultivates a culture of accountability and resilience, driving sustainable success. Harnessing Diverse Perspectives Collaboration is key for Maninder. She highlights the importance of teamwork in decision-making. “I strive to provide integrity in decision-making which can be backed with intel but also demonstrate sound judgment when needed,” she adds. When faced with complex scenarios, particularly those with high stakes, Maninder’s approach involves thorough consideration of available options, weighing risks and benefits. “I like to ensure that I have considered the various options available, understood the risks/benefits and challenged the options with peers who may provide a different lens; and hence may offer a different approach, basically ‘stress testing’ my view” she explains.
By leveraging diverse perspectives, Maninder ensures a well-rounded evaluation of options, leading to better outcomes. Her emphasis on collective decision-making highlights the value of collaboration in achieving success amidst challenges. Securing Against Emerging Risks “In the current times of global uncertainty, there’s a laser focus on risk management practices as new risks emerge,” notes Maninder. Risk management practitioners need to help their organisations identify these risks and subsequently enhance processes, and control design to mitigate any exposure. As advancements in technology become more widely available ease of access is increased, including for malicious parties. Understanding these risks is vital. Maninder outlines the importance of proactive measures to mitigate potential threats. “It is crucial for risk management practitioners to be aware that ‘unknownunknowns’ are prevalent in today’s climate of global uncertainty. Risk management practitioners need to adapt strategies to prepare for emerging risks,” she advises. By proactively staying open-minded to the potential for new worst-case scenarios, organisations can start to navigate uncertainties; safeguarding their interests and ensuring long term resilience. Redefining Risk There is a great opportunity for 1LOD risk and control teams to leverage advancements in technology and deepen their skills in this area. “What I mean by this is using the technical knowledge of the regulatory rules and understanding how they translate to processes and the execution of services and products,” she explains, emphasising the importance of integrating regulatory knowledge with technological expertise. By enhancing skills in technology and regulatory understanding, risk and control teams can serve as a bridge between business lines, technology and the 2LOD risk and compliance functions. This mindset ensures a purpose-led approach to risk management in the first line, focusing on customer experience and outcomes. “Designing risk and controls with an understanding of customer consequences can be very powerful in my mind,” Maninder adds; presenting the significance of aligning risk management practices with customer-centric principles. Embracing these opportunities empowers organisations to navigate challenges while delivering compelling customer outcomes.
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Effects of Modern Leadership Approaches in the Dynamic Business Arena - by Akinlawon Fayokun n the ever-evolving landscape of the business world, I the role of leadership has undergone significant transformations. Modern leadership approaches have emerged as a response to the dynamic and complex challenges faced by organizations today. This article explores the effects of these contemporary leadership styles on the dynamic business arena. Transformational Leadership One prominent modern leadership approach is transformational leadership. Leaders adopting this style inspire and motivate their teams to achieve extraordinary outcomes. The emphasis is on creating a shared vision, fostering innovation, and encouraging a culture of continuous improvement. The effects of transformational leadership can be seen in increased employee engagement, improved productivity, and a greater ability to adapt to change. Servant Leadership Servant leadership, another modern approach, focuses on the leader's commitment to serving their team members. Leaders prioritize the well-being and development of their employees, creating a positive work environment. The effects of servant leadership extend to enhanced employee satisfaction, loyalty, and a sense of purpose within the organization. Adaptive Leadership In today's rapidly changing business environment, adaptive leadership has gained prominence. Leaders employing this approach are agile and capable of navigating uncertainty. They encourage flexibility and innovation, enabling organizations to thrive in the face of challenges. The effects of adaptive leadership include improved resilience, quicker response to market shifts, and the ability to capitalize on emerging opportunities. Authentic Leadership Authentic leadership emphasizes transparency, selfawareness, and genuine communication. Leaders who embody authenticity build trust within their teams, fostering open and honest dialogue. The effects of authentic leadership can be seen in stronger interpersonal relationships, increased employee morale, and a positive organizational culture. Distributed Leadership Distributed leadership involves the delegation of authority and responsibility across various levels of an organization. This approach encourages collaboration and empowers employees at all levels to contribute to decision-making. The effects of distributed leadership include improved problem-solving capabilities, increased innovation, and a more engaged and empowered workforce. www.ciolook.com | April 2024 | 16
CXO www.ciolook.com | April 2024 | 17
Leading Through Uncertainty www.ciolook.com | April 2024 | 18 The Role ofLeadership in Risk Management n the realm of business and beyond, the only certainty I is uncertainty. In the face of ever-evolving risks and challenges, effective risk management is not just a necessity but a strategic imperative. At the heart of successful risk management lies leadership - the ability to navigate uncertainties, inspire confidence, and chart a course towards resilience and success. This article delves into the pivotal role of leadership in risk management, exploring how visionary leaders guide their organizations through turbulent waters with foresight, agility, and integrity. The Leadership Imperative Leadership sets the tone for risk management within an organization. Whether it's a CEO steering the ship or a project manager guiding a team, effective leadership is essential for identifying, assessing, and mitigating risks proactively. Leaders play a multifaceted role in risk management, from setting risk appetite and fostering a culture of accountability to making tough decisions in times of crisis. Setting the Tone Leadership begins with setting the tone from the top. Executives must articulate a clear vision for risk management, defining organizational objectives, risk appetite, and tolerance levels. By communicating a strong commitment to risk management and compliance, leaders establish a culture of accountability and integrity, where risk considerations are integrated into strategic decisionmaking processes. Fostering a Culture of Risk Awareness Effective risk management requires a collective effort
www.ciolook.com | April 2024 | 19 across the organization. Leaders must foster a culture of risk awareness where employees at all levels understand their role in identifying, assessing, and mitigating risks. This involves promoting open communication channels, encouraging constructive feedback, and rewarding proactive risk management behaviors. Leading by Example Leadership is not just about words; it's about actions. Leaders must lead by example, demonstrating their commitment to risk management through their behaviors and decisions. By adhering to ethical standards, following risk management protocols, and embracing transparency, leaders instill confidence in their teams and stakeholders, fostering a culture of trust and accountability. The Leadership Toolbox for Risk Management Strategic Vision Visionary leaders possess a keen understanding of the broader business landscape and anticipate emerging risks and opportunities. They develop a strategic vision that aligns risk management objectives with organizational goals, ensuring that risk considerations are integrated into business strategies and initiatives. Foresight and Anticipation Leaders must possess foresight and anticipation, anticipating potential risks and disruptions before they materialize. By scanning the horizon for emerging
trends, regulatory changes, and market shifts, leaders can identify potential risks and develop proactive strategies to mitigate their impact. Adaptability and Agility In today's fast-paced world, leaders must be adaptable and agile, capable of responding quickly to changing circumstances. They must embrace uncertainty as an opportunity for growth and innovation, empowering their teams to navigate challenges with resilience and creativity. Effective Communication Communication is key to effective risk management. Leaders must communicate risk management objectives, expectations, and priorities clearly and consistently across the organization. They must also foster open dialogue and encourage feedback, ensuring that risk considerations are integrated into decisionmaking processes at all levels. Collaboration and Empowerment Leadership in risk management is not a solo endeavor; it requires collaboration and empowerment. Leaders must build diverse teams with complementary skills and perspectives, fostering a culture of collaboration and innovation. By empowering their teams to take ownership of risk management initiatives, leaders can leverage the collective intelligence of the organization to identify and mitigate risks effectively. Leading Through Crisis The true test of leadership in risk management comes during times of crisis. Whether it's a financial meltdown, a cybersecurity breach, or a global pandemic, leaders must remain calm, decisive, and compassionate in the face of adversity. They must provide clear direction, mobilize resources effectively, and communicate transparently with stakeholders, inspiring confidence and trust in the organization's ability to weather the storm. Crisis Preparedness Effective leaders understand that crisis preparedness is essential for risk management. They invest in robust crisis management plans, conduct regular scenario planning exercises, and ensure that teams are trained and equipped to respond effectively to emergencies. By proactively preparing for crises, leaders can minimize their impact and preserve organizational resilience. Transparent Communication During a crisis, transparent communication is paramount. Leaders must communicate openly and honestly with stakeholders, providing timely updates on the situation, acknowledging challenges, and outlining the steps being taken to address them. By maintaining transparency and credibility, leaders can mitigate the risk of misinformation and restore stakeholder confidence. Learning and Adaptation Crises are learning opportunities for organizations and leaders alike. Effective leaders leverage crises as catalysts for change, identifying lessons learned and adapting their strategies and processes accordingly. By fostering a culture of continuous learning and improvement, leaders can transform crises into opportunities for growth and innovation. Conclusion In an increasingly uncertain and complex world, effective risk management requires visionary leadership. Leaders play a pivotal role in identifying, assessing, and mitigating risks proactively, setting the tone for risk management within their organizations, and guiding their teams through turbulent times with foresight, agility, and integrity. By fostering a culture of risk awareness, leading by example, and leveraging strategic vision and adaptability, leaders can navigate uncertainties with confidence and resilience. Moreover, by embracing crises as learning opportunities and communicating transparently with stakeholders, leaders can inspire trust and chart a course towards long-term success and sustainability in an unpredictable world. www.ciolook.com | April 2024 | 20
Risk management is a more realistic term than safety.
he risk management and insurance sector Tdemands constant vigilance. Forward-thinking professionals leverage data analytics to anticipate emerging threats and craft proactive strategies to manage risks. Collaboration is key, with insurers working alongside clients to identify vulnerabilities and tailor coverage solutions. By embracing innovation, this field safeguards businesses against unforeseen challenges, fostering a secure and resilient future. Thabile Nyaba embodies this ethos! Standing as a pivotal figure, her journey is marked by a relentless pursuit of excellence and foresight. She is a luminary in the realm of risk management, renowned for her astute leadership and profound impact on shaping the industry's landscape. Thabile started her career in auditing, mastering the art of scrutinizing finances in both private and public sectors. However, it was risk management that truly grabbed her interest. She thrived as the organisation's lookout, spotting potential threats and opportunities and then planning ways to tackle them. Thabile has a knack for turning challenges into opportunities and believes in balancing risk and reward within strong governance. She's guided many organisations through transformative journeys, earning recognition as a leader in risk management. Thabile's leadership hasn't gone unnoticed. Her teams have received praise for their innovative risk management approaches. In 2019, she became the president of the Institute of Risk Management South Africa (IRMSA), solidifying her status as a thought leader in the field. Her dedication earned her the prestigious Honorary Lifetime Membership Award from IRMSA in recognition of her contributions. Today, Thabile continues to lead the way in risk management. As Chief Risk & Sustainability Officer at Old Mutual Insure, Chair at Elite Risk Acceptances (Pty) Ltd, and Board Member and Chair of Audit and Risk Committee at WDB Investment Holdings, she inspires others to push boundaries and strive for excellence. Let's delve into the story of a visionary leader reshaping industries and inspiring change! What challenges have you faced in your role and how have you leveraged your leadership skills to navigate these challenges effectively? There have been many challenges, but two of them in particular stand out for me. The first was finding myself one of the very few black female leaders in the risk management field. The second was changing the perception of risk management from being a tick-box compliance function to one that adds value to the organisation. For a given level of return and profitability, if you can lower the risk, you are adding value. Inwardly, I had to deal with my own insecurities bordering on 'imposter syndrome,' while at the same time having the outward confidence to build my teams. Before I could lead others, I realised that I first needed to lead myself. I invested in myself, seeking to continuously disrupt and define myself. I always strive to lead and influence where I find myself and be the 'change I want to see.' In some cases, I couldn't get a seat at the table and that is why I decided to start my own table and invite more like-minded leaders to join me. I continue to take on the responsibility of inspiring women professionals in risk management, especially black women, and facilitating their careers so that they, in turn can inspire others. www.ciolook.com | April 2024 | 22
As a Certified Risk Management Practitioner and Professional, what strategies do you employ to stay updated on the latest developments and trends in risk management? Dialogue and conversations with a wide range of stakeholders is essential, as is reading and researching widely. I take an interest in other fields represented around the boardroom table to gain an appreciation of different worlds which helps position risk management as an enabler. Seminars, webinars, and round tables have their place, but I recommend more informal conversations such as 'Coffee Risk Chats with the CRO,' where I quickly find out about the hot buttons and what people are really feeling and thinking at all levels of the organisation. I am also fortunate to be invited to present at various local and global conferences. While these may seem like an opportunity to share my knowledge, in reality, I relish the learnings and revelations that come from interacting with some of the most brilliant minds in the world. This helps me stay updated and upgraded, so I don't get outdated. As a leader, how do you inspire and empower your team to embrace risk management as a strategic enabler rather than just a compliance function? It has always been fundamental for me as a leader to ensure that risk management is positioned as a strategic enabler and partner to the business. It is no longer about trying to predict the next risk but being prepared for any disruption that might occur. I strongly advocate for www.ciolook.com | April 2024 | 23 Chief Risk & Sustainability Officer at Old Mutual Insure, Chair at Elite Risk Acceptances (Pty) Ltd, and Board Member and Chair of Audit and Risk Committee at WDB Investment Holdings
building resilience – to navigate and survive disruptions and nurture the resourcefulness and adaptability of our people. We drive resilience muscle memory-building initiatives to build decision-making and judgment abilities. I also employ a three-dimensional leadership style, where I can lead from the front—to direct and provide the vision, from the side—where I empower and encourage my team to step out of their comfort zone and stretch themselves, but at the same time be right next to them should they need me; and from behind – where the team has matured and is empowered to make their own decisions, make mistakes, and learn. Outside of your professional achievements, you're known for your passion for connecting youth with opportunities. Can you tell us more about your involvement in this area and why it's important to you? It is imperative to build our youth for the future, to whom we will hand over the baton. Our young people face a lack of exposure, which is why I began my NPO with the theme of #ConnectingYouthWithOpportunities. I am firmly committed to seeking opportunities for youth to succeed, especially as our country has one of the highest youth unemployment rates in the world. I also drive initiatives within my division to promote the youth, such as ‘'Young Bright Minds'’—a think tank whereby young graduates research, analyse and solve problems, and 'On the Couch with Thabile'—an initiative aimed at providing the youth with a voice. I have also created platforms where talented youth in my team engage at the highest level of the organization's governance structures, which has elevated many of their careers. As the Past President of IRMSA, I have been tasked to run with the Youth and Africa Strategy. Moreover, I am passionate about mentoring women, and I currently serve as Old Mutual Women Network Chair. How do you maintain a healthy work-life balance, especially with such a demanding role and what brings you the greatest joy outside of work? I am proud of many things in my life, but nothing beats being a mother to my two phenomenal and crazy children, wife to my high school sweetheart, daughter to the 'world's greatest parents,' big sister to my siblings 'the greatest gifts our parents gave us' and best friend to my loyal tribe. I am an early riser (5 am) which allows me to spend time with myself meditating, praying, reading, and planning for the day ahead. This helps me take care of my inner empire and emerge as a leader of my day, and not a victim of it. I also live a life of gratitude by finding extraordinary in the ordinary, I have realised that a great life is made of each day well lived. When I take time off work, I particularly enjoy adventuring with my family - my greatest treasure, exploring the world with them and having fun together. It has also been my greatest privilege to watch my children grow up and flourish into the most amazing adults with a passion for life. For me, the key to maintaining a healthy work-life balance is through setting boundaries and honouring them. I often joke with my team and say, “I don't cheat on work, and therefore I won't cheat on my personal and family time.” Looking ahead, what are your aspirations for the future of risk management and how do you plan to achieve them under your leadership? What lies ahead in the future is integrating risk management and sustainability. In rising to this very challenge, I have recently taken up the role of Chief Sustainability Officer, in addition to my role as Chief Risk Officer. I am looking forward to exploring the integration of risk, strategy, and sustainability navigating the risks we continuously face building a resilient, sustainable future for the organisation, industry, communities, customers, shareholders, and mostly generations to come! What a noble agenda to drive! www.ciolook.com | April 2024 | 24
Risk management is less about avoiding risk and more about understanding it.
Beyond the Horizon Proactive Risk Management in Today's Business Environment n today's rapidly evolving business landscape, the ability to navigate I uncertainty is critical for organizations seeking sustainable growth and success. Traditional risk management approaches, which focus on reacting to known risks as they arise, are no longer sufficient in a world where risks are complex, interconnected, and constantly evolving. Proactive risk management offers a forward-thinking approach that enables organizations to anticipate, assess, and mitigate risks before they materialize into crises. Understanding Proactive Risk Management Proactive risk management is a strategic approach to identifying, assessing, and mitigating risks before they escalate into significant threats. Unlike reactive risk management, which focuses on responding to known risks after they occur, proactive risk management involves anticipating potential risks and taking preventive action to minimize their impact. www.ciolook.com | 202 | April 4 26
www.ciolook.com | il 2024 | Apr 27 Mitigating Risks The ultimate goal of proactive risk management is to mitigate risks before they materialize into crises. This involves developing proactive strategies and controls to prevent or minimize the likelihood and impact of identified risks. Mitigation measures may include implementing robust internal controls, diversifying risk exposures, securing insurance coverage, or developing contingency plans for potential scenarios. Strategies for Proactive Risk Management Cultivate a Risk-Aware Culture Proactive risk management begins with culture. Organizations must foster a culture of risk awareness where employees at all levels understand their role in identifying, assessing, and mitigating risks. This involves promoting open communication channels, encouraging proactive risk management behaviors, and rewarding Anticipating Risks At the heart of proactive risk management lies the ability to anticipate risks before they materialize. This requires organizations to adopt a forward-looking mindset and scan the horizon for emerging threats and opportunities. By analyzing industry trends, regulatory changes, technological advancements, and geopolitical developments, organizations can identify potential risks and vulnerabilities early on. Assessing Risks Once risks are anticipated, they must be assessed in terms of their likelihood and potential impact. Proactive risk assessment involves conducting thorough risk analyses, leveraging both qualitative and quantitative methods to evaluate risks objectively. By understanding the probability and consequences of various risks, organizations can prioritize their efforts and allocate resources effectively.
individuals for their contributions to risk mitigation efforts. Embrace Technology and Data Analytics In today's digital age, technology plays a pivotal role in proactive risk management. Organizations can leverage advanced analytics tools and predictive modeling techniques to identify emerging risks and trends, uncover hidden patterns and correlations, and simulate various scenarios to assess their potential impact. By harnessing the power of technology and data analytics, organizations can make more informed decisions and stay ahead of the curve in risk management. Establish Early Warning Systems Early warning systems are essential for proactive risk management. Organizations can develop monitoring mechanisms and key risk indicators (KRIs) to detect potential risks and vulnerabilities in real time. By establishing early warning systems, organizations can identify red flags and take preventive action before risks escalate into crises. Scenario Planning and Stress Testing Scenario planning and stress testing are valuable tools for proactive risk management. Organizations can develop multiple scenarios to anticipate various outcomes and their implications, allowing them to identify potential risks and vulnerabilities. By stresstesting their strategies and processes against different scenarios, organizations can identify weaknesses and areas for improvement, enabling them to build resilience and adaptability. The Benefits of Proactive Risk Management Enhanced Resilience Proactive risk management enables organizations to build resilience and adaptability in the face of uncertainty. By anticipating and mitigating risks before they materialize into crises, organizations can minimize disruptions, protect their reputation, and maintain business continuity even in challenging circumstances. Competitive Advantage Proactive risk management can provide organizations with a competitive advantage in today's dynamic business environment. By staying ahead of the curve in risk management, organizations can identify emerging opportunities, seize market share, and differentiate themselves from competitors who are reactive rather than proactive in their approach to risk management. Stakeholder Confidence Effective risk management enhances stakeholder confidence and trust in the organization's ability to deliver on its promises. By demonstrating a proactive approach to risk management, organizations can reassure investors, customers, and other stakeholders that they are well-prepared to navigate uncertainties and protect their interests. Conclusion In today's volatile, uncertain, complex, and ambiguous (VUCA) world, proactive risk management is no longer a luxury but a necessity for organizations seeking sustainable growth and success. By adopting a forwardthinking approach to risk management, organizations can anticipate, assess, and mitigate risks before they escalate into crises, enabling them to build resilience, gain a competitive advantage, and enhance stakeholder confidence. From cultivating a risk-aware culture and embracing technology to establishing early warning systems and conducting scenario planning, proactive risk management requires a concerted effort across the organization. By investing in proactive risk management strategies and practices, organizations can navigate uncertainties with confidence and chart a course towards long-term success beyond the horizon. www.ciolook.com | April 2024 | 28