Enterprise Risk Management (ERM) is about assisting organisations to ensure the vision and mission of that organisation is realised as encompassed in the Objectives/Goals. It assists the Board/Governing Body and management to ensure that opportunities are pursued, and risks are managed to an acceptable level. Enterprise Risk Management in its full name suggests that it is organisational wide, and it is integrated into the fabric of an organisation such that it influences decision making as its ultimate aim.
Risk practitioners have a specialised background and are highly skilled in analysing, managing, reporting, and escalating risks. Risk Practitioners require a combination of knowledge and skills, including:
- People management
- Relationship-building skills
- Business understanding
- Financial knowledge
- Regulation knowledge
- Analytical and creative thinking,
- Strategic Business Expertise
- Working under pressure
- Planning and organisational skills
- Statistical skills
- Quantitative and Qualitative Risk Management skills
- Understanding and being resilient to changing regulatory space
- Soft skills i.e. Communication, Negotiation, Leadership, presentation skills
- Understanding complex environments and adapt to change
Risk Practitioners assist businesses to understand the multiple spectrums of risks they face in a holistic and comprehensive manner as well as providing assistance and guidance to ensure effective risk management capability in the organisation. Risk Practitioners in Risk Management use Software Technology and Data Analysis tools to help senior business leaders and risk audiences understand how data-driven changes and live data information can be used to improve efficiency and add value.
Risk Practitioners assist the organisation by undertaking or facilitating activities with management. This is related through risk workshops whereby risks are identified and action plans for managing risk in an organisation are implemented. A Risk Practitioner facilitates and engages with all stakeholders to understand the needs of the organisation as well as the line departments within that organisation. In addition, they also engage with external stakeholders to understand the internal and external context of the risk environment.
The information gathered during these workshops and from engagement with stakeholders will be used to draw up risk registers or risk data. These will be analysed, and reports submitted to Senior Management and the C Suite to help with decision making at strategic level and help management with operational improvements. The risk-based decisions will be considered in relation to opportunities and potential risks taking the organisation’s appetite and risk tolerance into account and weighing the pros and cons of implementation.
Risk Management is a holistic practise and can be applied to all industries in the public and private sector that offer opportunities in Risk Management (not limited to), e.g.
- Business Management
- Public Sector Risk Management Practises
- Financial Sector and Financial Analysis
- Data Analyst
- Risk Analyst
- Risk Facilitator
- Business Intelligence
- Future studies or Futurism
- Risk and Compliance
- Risk and Governance
- National, provincial & local government
- State-Owned Enterprise (SOE’s)
- Non-Governmental Organization (NGO’s)
- Mining Organisations
- Consulting Services
Academic credentials and a Degree in Risk Management and related fields, as listed above under “specialise in”. For a Certified Risk Management Practitioner (CRM Prac) designation you need to be board certified. The Organisational Risk Manager (Risk Practitioner) Qualification is registered on the National Qualifications Framework (NQF) at level 6. Certification is part of career path in risk management, and you can do a Certified Risk Management Practitioner (CRM Prac) or a Certified Risk Management Professional (CRM Prof)
Risk Management is offered at various Universities but only a few offer risk management as an under-graduate Degree or Diploma, i.e.
- Stellenbosch University
- North West University
Other Business Schools such as Milpark and MANCOSA offer Postgraduate Diploma’s in Risk Management.
Accredited Risk Institutions offer short courses, e.g. UCT
IRMSA – The Institute of Risk Management South Africa offer the CRM Prac and CRM Prof for Risk Professionals through enrolling for the Board Exam at IRMSA. Through the IRMSA body, a professional career path can be obtained by writing the IRMSA Board Exam to obtain a Certified Risk Management Practitioner ,CRM Prac or a Certified Risk Management Professional CRM Prof designation.
The certification validates that the individual possesses a foundation phase knowledge for the organisational risk management program under supervision. For CRM Prac, a comprehensive level of technical knowledge to implement an organisational risk management program without supervision CRM Prof.
Certified Risk Practitioners (CRM) operate in a corporate and sometimes highly regulated environment, and they are often required to wear many hats as their tasks, activities and responsibilities can impact many aspects of the organisation. Risk Management is driven from a strategic level and hence includes communicating with stakeholders on all levels, facilitating risk processes to all risk audiences, analysing f data, to drawing conclusions and presenting risk reporting to senior management. CRM needs strong leadership and communication skills and the ability to understand some technical concepts. There is a high level of accountability that comes with the job, and you will need to be innovative in your thinking and stay ahead of the curve.
- Risk Officer
- Certified Risk Practitioner
- Certified Risk Management Professional
- Chief Risk Officer
The Institute of Risk Management South Africa (IRMSA) is the Professional Body for Risk Management in South Africa as recognised by the South African Qualifications Authority (SAQA). IRMSA represents individuals and companies committed to the enhancement of the Risk Management discipline. IRMSA serves aspiring risk practitioners, risk professionals and decision makers in Southern Africa.
IRMSA is dedicated to the advancement and practice of the risk management profession and accreditation, through research, promotion, education, upliftment, training, guidance and strong relationships with other Institutes and Associations. IRMSA promotes and supports the interest of their members and protect the public interest.