The value of IRM-certified risk-intelligent professionals: Ethical champions, decarbonisation advocates, DEI enablers, reputation guardians and business messiahs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In the rapidly evolving landscape of global business, the demand for professionals who can navigate the intricate web of risks and opportunities with expertise and ethical consideration has never been higher. Institute of Risk Management (IRM)-certified professionals are uniquely equipped to meet these challenges, bringing a wealth of knowledge and a holistic approach to enterprise risk management (ERM) that can significantly benefit organisations across all sectors.

The diverse skills can be a boon to any organisation, emphasising ethical conduct, environmental sensitivity, contribution to decarbonisation, adept handling of Artificial Intelligence (AI) risks and opportunities, safeguarding company reputation, commitment to diversity, equality and inclusion (DEI), and fostering a positive organisational culture.

Ethical Grounding

At the heart of the IRM certification is a strong emphasis on ethics. IRM-certified professionals are trained to approach risk management with integrity, ensuring that their decisions are not only effective but also morally sound. For example, when faced with a decision that could potentially increase short-term profits at the expense of long-term sustainability, an IRM-certified professional will weigh the ethical implications and opt for a strategy that sustains organisational integrity while still promoting growth.

This ethical grounding helps in building trust with stakeholders and maintaining the company’s reputation. A risk champion in any function using a Risk Control & Self-Assessment process can help identify deviations from the SOP, non-compliance to internal policies or regulations or breach of SLAs and proceed to do root cause analysis and propose corrective and preventive action for the deviation in consultation with the functional head. This helps flag small deviations which can become larger breaches and potential ethical issues of the future inadvertently.

Sensitivity to the Environment

In today’s world, where environmental concerns are paramount, IRM-certified professionals stand out for their sensitivity to ecological issues. They understand the complexities of environmental risk and its long-term implications on business operations. An IRM-certified risk intelligent manager, for instance, might lead the charge in integrating sustainable practices into the organisation’s operations, such as reducing waste or adopting renewable energy sources.

This not only helps in mitigating environmental risks but also positions the organisation as a responsible corporate citizen. It makes sense for a person in the Administration or Facilities unit to look at their goals and execute the same using a risk lens.

Contribution to Decarbonisation

Climate change poses one of the most significant risks to global business operations, and IRM-certified professionals are at the forefront of addressing this challenge. Their ability to analyse and understand the risks associated with climate change enables them to contribute meaningfully to decarbonisation efforts within their organisations.

By implementing strategies that reduce carbon emissions — such as optimising supply chains for efficiency or investing in clean technologies — they help their organisations contribute to global sustainability goals while also mitigating future risk exposure.

Navigating AI Risks and Opportunities

AI presents a plethora of opportunities and risks for organisations. IRM-certified professionals are adept at identifying the potential pitfalls and advantages of AI integration. For example, they might implement robust risk assessment frameworks to ensure that AI technologies are used ethically and in compliance with regulatory standards, thereby safeguarding the company against reputational damage and legal issues. Simultaneously, they can identify opportunities where AI can enhance operational efficiency and drive innovation, ensuring that the organisation remains competitive.

Safeguarding Company Reputation

The reputation of a company is one of its most valuable assets. IRM-certified professionals play a critical role in safeguarding this asset through proactive risk management. They are trained to anticipate and mitigate risks that could harm the company’s reputation, such as data breaches or unethical business practices.

By establishing comprehensive crisis management plans and conducting regular risk assessments, they help ensure that the organisation is prepared to respond effectively to potential threats, thereby protecting its reputation in the eyes of customers, investors, and the public. Customer service and marketing executives who are trained in risk are better poised to do social listening and respond and uphold the reputation of the company.

Commitment to Equality, Diversity, and Inclusion (EDI)

IRM-certified professionals recognise the importance of EDI in creating a vibrant, dynamic, and innovative workplace. They understand that diverse perspectives and inclusive practices are crucial in identifying and managing risks comprehensively. An IRM-certified professional might lead initiatives to diversify the workforce or implement inclusive policies that ensure all employees feel valued and heard.

This commitment to EDI not only enhances the organisation’s culture but also broadens its perspective on risk, leading to more resilient and adaptive strategies. Diversity of thought helps build a champion-challenger approach within the function.

Building a Positive Organisational Culture

Finally, the influence of IRM-certified professionals extends beyond risk management to shaping the overall culture of the organisation. Their ethical approach, sensitivity to environmental and social issues, and commitment to EDI contribute to creating a culture of integrity, sustainability, and inclusiveness. For instance, by promoting transparent communication and ethical decision-making, they help foster an environment where employees feel empowered to speak up about risks and contribute to the organisation’s success.

IRM-certified risk intelligent professionals are far more than risk managers; they are strategic advisors who bring a holistic approach to decision-making to enhance the value of the organisation by addressing challenges and seizing opportunities. The rigorous training and ethical orientation as part of their IRM journey equips them to address a wide range of challenges, from climate change and AI to reputation management and cultural development.

By integrating IRM-certified professionals into various functions and departments, an organisation will see improved resilience, adaptability, and overall success. As businesses continue to operate in an increasingly complex and uncertain world, the need for such well-rounded and values-driven professionals will only continue to grow. Chief Human Resource Officers and Recruitment Firms can partner with IRM India Affiliate to build a risk-intelligent organisation.

The authors, Sunder Natarajan is the Chief Human Resources Officer at IndiaFirst Life Insurance and Certified Fellow of the Institute of Risk Management (Level 5); and Hersh Shah is the Chief Executive Officer at IRM India Affiliate, India’s Leading Young Enterprise Risk Expert, Technical Specialist in ERM and Top Risk Management Voice on LinkedIn.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow