The Future of Risk Management is Automated
The future of risk management is undeniably intertwined with automation, artificial intelligence, and continuous monitoring. Businesses faced cascading disruptions across global supply chains, emphasizing the need for a more proactive and data-driven approach. The era of cascading risks demands a shift towards identifying early indicators and leveraging automation to mitigate potential disruptions before they manifest.
What Soft Skills are Required to Progress in Your Risk Management Career?
While technical proficiency is crucial in risk management, the significance of soft skills cannot be overstated. Risk management leadership demands a unique set of interpersonal abilities. Communication skills, leadership, and relationship-building are vital for risk managers to effectively convey complex risk scenarios to stakeholders. In our fast-evolving business landscape, adaptability and strategic thinking are invaluable. The ability to navigate ambiguity and inspire teams is essential for those aiming to progress in their risk management careers.
Soft Skills for the Future
In the dynamic world of risk management, the emphasis on soft skills for the future is paramount. Risk managers should cultivate strong analytical and problem-solving skills, enabling them to navigate complexities and spot potential risks. People management and leadership skills are crucial for inspiring teams to tackle challenges head-on. Effective relationship-building, both within and beyond the organization, ensures a collaborative approach to risk management. As we delve into the future, the ability to adapt to change and think strategically will be integral to successful risk management careers.
Development of Hard Skills as a Result of AI
The integration of Artificial Intelligence (AI) into risk management processes has reshaped the landscape, necessitating the development of specific hard skills. Analytical skills become pivotal as risk managers work with AI-driven tools to collect and analyze data. The ability to quantify risks and plan risk management approaches requires a deep understanding of both data analysis and technological tools.
According to Shirleen Lim, AVP at Selby Jennings, across APAC, Risk hiring was slow in the first half of 2023 due to the significant events that have transpired in the banking and wider financial services industry. In the second half of 2023 and likely through 2024, financial institutions have placed emphasis on four areas of risk: Compliance Risk, Cybersecurity Risk, Liquidity Risk, and Credit Risk. Sustainability and ESG risks associated with climate change, social issues, and governance practices continue to be increasingly important to financial institutions.
How We Support Companies Looking for Risk Management Talent
Navigating the complexities of risk management requires a skilled and adaptable workforce. Here at Selby Jennings, we support clients in identifying and acquiring the necessary talent for the future of risk management. We recognize the evolving skill set required, encompassing both soft skills and the technical proficiency to thrive in an automated risk management landscape. From aiding in the development of existing talent to assisting in recruitment and outplacement, our goal is to ensure that organizations are well-equipped to meet the challenges of the future.
The future of risk management skills lies at the intersection of automation, soft skills, and evolving hard skills. As businesses navigate an era of cascading risks, cultivating a holistic skill set is imperative for risk management professionals aiming to thrive in an ever-changing landscape.
If you are seeking risk management talent, request a call back, and our specialist consultants will be in touch.
If you are a risk professional, submit your CV today.