Sunil Kumar A.
CxO, CONSULTANT, AUDITOR, ADVISOR, RESEARCHER, INVESTIGATOR: - [DME, BE (Civil), MBA (PM), CIPM, MPM, ISO-QMS, CLI]
Do you believe Risk Management Practise is on-demand at present?
I believe as a matter of urgency the re-engineering process has to be started for all businesses/organizations in this global crisis. Through this exercise the businesses/organizations could achieve their target.
So, please don't go with employee lay-off process as well as business / project halting and or close-out. You may regret later on.
I'm wishing a very Merry Christmas and a prosperous New Year to you and your family.
Clarification added December 29, 2008:
In general, the risk management is a function which is aimed at protecting the organization, its people, assets and profits, against the adverse consequences of pure risk, and is more particularly aimed at the reduction of the severity and variability of the losses.
So, an integrated approach along with project, programme and portfolio managements shall be considered for risk management since studies shows the impact of various risks causes not only economic loss, but also human suffering.
Kindly go with risk management today, instead of pay-cut, employee lay-off and business / project halting and or close-out.
I'm wishing a prosperous New Year to you and your family.
Answers (8)
Josh C.
Director of Operations at Web Industries, and Decent Little League Coach
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Hi Sunil,
For what it's worth, I believe poor risk management practices, or perhaps senior management's refusal to listen to their risk managers, is the single biggest reason that we are in the mess we're in.
So, I do believe that risk management expertise will be in demand; some of this will be forced by additional regulation. Whether "demand" means more jobs, or simply requirements for better risk managers with more expertise, I can't say, but it's clear that this is a profession that will be more important very quickly.
Josh.
Manoj K.
Business Analyst (Banking) and SAP Strategy Management & BI Consultant @ Accenture
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Hi Sunil,
My educated guess is that Yes, there will be huge increment in demand for genuine Risk Mgmt Professionals. But the contours in which they play will be significantly different to that of what we saw till 2008.
I think we will have to adopt (like it or not) Universal Accounting rules along the likes of IFRS (or slightly modified one). If we cant get a global consensus for its adoption, atleast heavy weights like G20 will have to adopt and set precedent for others to follow. Then the rules for Risk Mgmt prefessionals will be more or less uniform, consistent and Universal, much to the benefit of not just its professionals but also to the Global Commerce at large.
Regards,
Manoj K
Links:
Andy K.
Speaker, Author, Coach. Helping companies improve their ability to deliver projects & lead teams (www.i-leadonline.com)
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A couple years back my then 9 year old son came in from outside. He had been playing with backyard neighbor Brenna (about a year older than him). He asked, "Dad... Brenna said that everything in life is a risk..... Is that true?"
Quite a question from a 9 year old! Part of me wanted to know how they got on that subject, but I digress!
In some ways, Brenna was correct, which is what I communicated to my son and led to an interesting discussion.
My experience: people too often don't have the interesting discussions with risks. "Risk" is a four-letter word, whether on projects or in our personal lives.
Most research I've read states or implies that "denial of risk" is deadly to projects. We work with organizations around the world who are struggling with how to deliver projects and lead teams. Most projects I audit either don't formally manage their risks, or if they do, they just touch on the surface.
We have a popular keynote and e-learning offering entitled "What You Need to Know About Risk Management". We have found that people don't need a PhD in risk management to reap project benefits. As you know, Sunil, there are very straightforward practices to help people manage risks.
Is there existing and growing need for risk management practices and expertise? Unquestionably.
Does this need translate to career opportunities? Perhaps. As you may be aware, the Project Management Institute now has a PMI-RMP certification for "risk management professionals." Perhaps they forsee what you are suggesting.
Regardless, we have found in our executive coaching practice that every leader benefits from improving their own risk management expertise.
Brenna has it right, as it turns out... We are surrounded by risks. The leaders who know how to navigate risks wisely will reap the greatest results.
P.S. As a New Year's gift to my LinkedIn colleagues, I'd be glad to extend a free license of our risk management e-learning to the first 5 people who contact me at andy@i-leadonline.com. 2 PDU's or .2 CEU's for free is a nice way to start out 2009! If you're not one of the first 5 I'll give you a coupon code for $20 off the $49.95 list.
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Jessica J.
Director
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The Hartford CT chapter of OWASP will be holding its next meeting on February 10th. The Open Web Application Security Project (OWASP) is a worldwide free and open community focused on improving the security of application software. Our mission is to make application security "visible," so that people and organizations can make informed decisions about application security risks.
http://www.owasp.org/index.php/Hartford
Jim B.
Senior LAN Administrator
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Since most of the players who have been hurt in the current economic crisis HAD risk management departments, I don't see this as a growth area.
Best wishes for a low risk 2009 :)
Amit G.
Business Strategist, InnoVentor and a part of team called God's Children
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Hi Sunil,
I think RISK (Reduce Inhibitions to Safeguard Knowledge) Management was part of every decision that managements took worldwide before and after the economic slump. It will in my opinion gain more respect but will have a huge tendency to be overused. One must remember that to every action there is an equal and OPPOSITE reaction. It is precisely this reaction that we all tend to be wary of and even more now.
Take for instance, when we wish to invest, we risk, when we deflate/ retrench, we risk, when we sit idel, we risk. So one has to embedd that into ones belongings just the way our income and expenses calculations go.
Now the intellectual community is so damn scared that every move happens after deep analysis. This can cause Actionable Paralysis.
Coming back to square one, Risk management pundits will thrive but will have to share their pie with the likes of spiritual or holistic leaders as well.
Trust me, its not the only business to be in.
Best Regards
Lynn W.
virtualization since Jan68, online at home since Mar70
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recent news item:
Accounting Standards Wilt Under Pressure
http://www.washingtonpost.com/wp-dyn/content/article/2008/12/26/AR2008122601715.html
from above:
In October, largely hidden from public view, the International Accounting Standards Board changed the rules so European banks could make their balance sheets look better. The action let the banks rewrite history, picking and choosing among their problem investments to essentially claim that some had been on a different set of books before the financial crisis started.
... snip ...
