This is according to Thelma Kruger, executive consultant at Network Recruitment (Finance), who adds that a similar pattern is emerging in South Africa. "This industry is definitely growing locally. As a specialist recruitment agency, we've seen a significant increase in risk management placements over the past five years, from just seven in 2008 to almost 30 last year alone."
Risk management is the continuous process of identifying, analysing and evaluating potential risks to a company, minimising and controlling the probability of these risks, and mitigating any adverse effects of loss to the company.
The level of risk an entity is prepared to accept, or risk appetite, can range from averse to hungry; risk management helps strike the balance between uncontrolled innovation and excessive caution. It is the treatment of risk exposures involving identification, assessment and priorities action of risk. Also, risk doesn't necessarily arise from an action - it can be an outcome of an inaction.
Well managed risk management practices are inculcated through all levels of an organisation, from executive/strategic management to operational management, and each level should manage risks within their spheres of responsibility.
A career in this industry is ideally suited to those looking to develop their analytical skills, interpersonal skills and technical business acumen. Over and above physically analysing businesses, candidates must also be prepared to build relationships with business owners to obtain their buy-in into risk management practices.
"Banks and insurance firms are regulated by the South African Reserve Bank and the Financial Intelligence Centre, and have to comply with risk management principles," Kruger explains. "But we are increasingly seeing companies within the non-financial services industry employing risk managers because of best practice principles. So even though they are not regulated yet, risk management is becoming a serious part of business management."
