The New Risk Environment
A number of recent articles continue to identify the battle for Risk talent as being a key business priority. One report states: “Companies are beginning to understand that, given the current level of business change and economic volatility, having a workforce that is not only highly skilled and motivated, but also diverse and inclusive, is a risk-critical strategy.”
The functions affected go to the very core of the business, and include Technology and Cyber Risk, Finance Risk, Operations and Operational Risk, first and second-line Compliance, together with the Group Risk function itself. With the new senior manager regime in force across more FS sectors than ever before, there is an increased focus on the Executive leading from the top. This includes ensuring:
- The correct risk appetite is in place
- The executive team and their reports have strong commercial and technical skills
- An effective succession plan is in place for Controlled function roles across the business, agreed with the regulator
- That the risk functions and the CRO are all empowered at Group exec level
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But what actions can Senior Stakeholders take to mitigate risk? </h2>
I wanted to share with you two recent examples where our clients needed to act quickly when circumstances dictated a change in the Risk and Audit leadership function.
The first client had a natural break when their CRO decided to leave. Whilst this was unexpected, the CEO took the view that this could open up an opportunity. He approached Norman Broadbent Interim, and asked us to identify suitable Interim CROs who could both deliver the BAU, and also look at reviewing the three lines of defence model. In addition they would validate a new target operating model with the Regulator, as well as assist in defining the new role profile, together recruiting the permanent replacement. This satisfied both the Exec and Regulator, and allowed the incoming permanent CRO to understand the scope of the longer-term role.
The second client had a flight-risk issue with a senior member of staff indicating that they would be leaving at some point. As the holder of a controlled function, this provided a tricky situation for the CRO. She could not go to market in the traditional way, and had limited control over time scales. This became her number one critical risk. She approached us for solutions, and we suggested a blended approach of service. Firstly, we commenced a Research and Insight Programme to map the market for suitable permanent candidates, especially focusing on Diversity and Inclusion. Secondly, we provided a shortlist ‘bench’ of Interim Risk specialists who could step in at a moment’s notice, both to effect a handover and to provide breathing space for the mapping and search to deliver.
Norman Broadbent Interim Management has an established track record in supporting organisations large and small through significant change. Additionally, in conjunction with our colleagues across the Norman Broadbent Group, we have assisted with permanent hiring strategies, especially where the focus needs to be on Diversity and Inclusion.
If you would like to find out more about how Norman Broadbent’s Interim Management Network can support you, or discuss a specific assignment, please do not hesitate to contact
Mike Davies, Director, on +44 (0) 207 484 0000 or via
mike.davies@normanbroadbentinterim.com for an initial confidential discussion.
