Question

The Risk Executive is a functional role established within organisations to provide a more comprehensive, organisation-wide approach to risk management. This functional role requires a mix of skills, expertise and perspectives to understand the strategic goals and objectives of organisations, organisational missions/business functions, technical possibilities and constraints, and key mandates and guidance that shape organisational operations. To provide this needed combination, the Risk Executive (function) can be filled by a single individual or office (supported by an expert staff) or by a designated group (e.g. a risk board, executive steering committee or executive leadership council).

This role does not presume a specific organisational structure or formal responsibility assigned to any one individual or group within the organisation.
Think of your professional working environment or a working environment you are familiar with. Can you identify this functional role? Is this functional role filled by a single individual or by a designated group in this working environment? Might it be that the chief executive officer (CEO) has chosen to absorb the Risk Executive function?

• Constructively comment on the analyses of key responsibilities of the functional role of the Risk Executive and where these responsibilities overlap with key security role responsibilities in a known professional environment which your colleagues posted in their initial responses.
• Be sure to support any claims you make.

(Word Count 350 -500)

Answer 1

The role of a Risk executive is to communicate risk policies and processes for an organisation. They provide hands-on development of risk models involving market, credit and operational risk, assure controls are operating effectively, and provide research and analytical support. Risk executive must have excellent quantitative and analytical skills, along with the ability to apply those skills across a variety of business processes.

Risk Management duties and responsibilities of the job

The functional role  under a Risk Management include the following:

• Designing and implementing an overall risk management process for the organisation, which includes an analysis of the financial impact on the company when risks occur
• Performing a risk assessment: Analysing current risks and identifying potential risks that are affecting the company
• Performing a risk evaluation: Evaluating the company’s previous handling of risks, and comparing potential risks with criteria set out by the company such as costs and legal requirements
• Establishing the level of risk the company are willing to take
• Preparing risk management and insurance budgets
• Risk reporting tailored to the relevant audience. (Educating the board of directors about the most significant risks to the business; ensuring business heads understand the risks that might affect their departments; ensuring individuals understand their own accountability for individual risks)
• Explaining the external risk posed by corporate governance to stakeholders
• Creating business continuity plans to limit risks
• Implementing health and safety measures, and purchasing insurance
• Conducting policy and compliance audits, which will include liaising with internal and external auditors
• Maintaining records of insurance policies and claims
• Reviewing any new major contracts or internal business proposals
• Building risk awareness amongst staff by providing support and training within the company.