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Training Prospectus

By Michael Vincent

26 December, 2006

Risk management is still in the process of becoming a core business activity, ever year the interest increases.  However the profession is blurred because of the inability of risk practitioners to understand and encompass an integrated viewpoint.  A large number of professions claim to be risk managers but in fact are managers of the facets of risk, in other words functional or tactical risk managers.  This only serves to fragment the industry and confuse the target companies who would benefit greatly from an integrated approach to risk management. 

 

Risk management practitioners and all other managers must learn to respect the other fellow who claims to be a manager of risk and separate risk into two levels, the strategic and the functional.

 

This separation is the paramount aim of the unit's training philosophy and programs.  These programs are offered in house and by demand in public forums. The understanding of the separation will lead to better implementation of a risk culture in all organisations over time.

 

Then managers must ask themselves "am I a manager of the strategic process or am I a manager of a function or functions?  If the answer is focused on the latter then you must recognise that you are a functional manager of risk and not necessarily a risk manager in the integrated sense.  There is nothing wrong with that assessment and if honesty prevailed then the concept of risk would move forward in leaps and bounds.  Disparate groups could then link up to form teams for the management of risk.

 

"As risk managers or indeed any manager you are now faced with a choice.  You can:

Remain in a functional position, with the duties dictated by the whims of the senior management team.Take up the challenge that is on offer and make the function a profession in a truly integrated sense.

 

As professionals we need to continually develop our skill base so that our organisations are given the very best opportunity to survive into the new era of business practice.

 

Training and articulation into defined and structured educational products is the modern paradigm of the successful business entity.

About the Authors

Director

Australasian Risk Management Unit

Department of Accounting and Finance

Faculty of Business and Economics

Monash University

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