Chief Risk Officers (CROs) often play a pivotal role in shaping how risk managers are perceived within a business. The view of risk managers as “Blockers” – those who impede progress by overemphasizing risks rather than opportunities – can sometimes stem from the way CROs and their teams communicate and implement risk management practices. It’s crucial to recognize that this perception isn’t solely the responsibility of CROs; it also reflects the broader organizational attitude towards and integration of risk management into its culture.

Factors Contributing to the “Blockers” Perception:

Communication Style: Risk managers who focus primarily on communicating risks without offering a balance of potential opportunities or solutions may come across as excessively negative.

Risk Management Approach: A stringent, compliance-focused risk management approach can seem obstructive, particularly if it’s misaligned with the business’s strategic objectives.

Lack of Integration: Risk management that isn’t seamlessly integrated into the business’s decision-making processes can seem like an external mandate rather than a function that adds value.

Actions CROs Should Emphasize:

Collaborative Engagement: Increase engagement with other business units to understand their objectives and challenges. Collaborate to develop balanced solutions that reduce risks while facilitating progress.

Strategic Alignment: Ensure risk management strategies are in harmony with the organization’s overall strategic goals. Demonstrate how robust risk management can aid in reaching business objectives.

Positive Communication: Emphasize instances where risk management has facilitated successful projects, averted significant threats, or reduced costs. Focus on the positive outcomes and added value.

Proactive Risk Management: Promote an anticipatory approach to risk management that identifies and addresses risks early on, thus enabling smoother project execution and fostering innovation.

Training and Awareness: Enhance training and awareness programs to embed a culture of risk intelligence across the organization.

What else can CROs do to improve the perception? What success stories can you share, where your actions have produced dividends?