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 professionals are strategic-level individuals with a specialised risk management background. The individual possesses a comprehensive level of technical knowledge and experience required to assess, implement, and manage an organisation’s risk management program without supervision. Risk professionals plan, organise, direct and control activities relating to risk management in order to guide the organisation in achieving its objectives. They present a case for risk management to the Board or equivalent body and senior management (Executive Committee) to obtain a written mandate. They define the value proposition of risk management, its structure and role in business and a value proposition linking -and making a business case for a specific work environment.

Enterprise Risk Management (ERM) at the very strategic level deals with the upper most tier in an organisation at Board/Governing Body status with the Board Risk Committee and the Executive Risk Management Committee. As the process is then cascaded throughout the organisation, it is rolled out at tactical and operational levels  where Risk Practitioners deal with middle and lower management and other staff.

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
• Healthcare
• IT
• Telecommunications
• Insurance
• Transportation

Since risk management is an enterprise-wide function that deals with business operations across various sectors, there are many fields of study at undergraduate level that one may pursue.

It is preferrable to have included in your degree modules on ERM that can then form the foundation of risk management. There are post-graduate studies at UNISA that offer studies in ERM at an NQF level 8 known as the Post Graduate Diploma in Risk Management.

Further to this, the Institute of Risk Management in South Africa (IRMSA) is SAQA approved and recognised as the body for risk management in the country. IRMSA has the Part 1 of the Board Exams that is aligned to the NQF Level 6, SAQA qualification status and once you pass this exam, you are conferred with the designation of Certified Risk Management Practitioner (CRM. Prac.).  IRMSA also has the Part 2 of the Board Exams that is pegged at a Chief Risk Officer (CRO) level and aligned to the NQF Level 8 as per SAQA with the designation of Certified Risk Management Professional (CRM. Prof.) conferred upon you on passing this exam. This professionalisation gives the very much needed credibility and status to risk management in South Africa so that employers can be sure to be recruiting a certain quality of skill when they appoint a CRM. Prac. or CRM. Prof.

Possession of a Master’s in Business Administration (MBA) coupled with ERM further studies and experience, places you in an enviable position to understand how business worksor those that generally do not have a commercial background in undergraduate studies and be in a position to contribute at Executive Level to decision making, making an impact in the organisation that you serve in.

Career Path

• Risk Officer
• Certified Risk Practitioner
• Certified Risk Management Professional
• Chief Risk Officer

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.

Career Path

• Risk Officer
• Certified Risk Practitioner
• Certified Risk Management Professional
• Chief Risk Officer