It's not surprising in this kind of economy that risk management is taking center stage again. What's different this time, according to CFO.com, is that there are so many different types of risks "converging" at once. Writer Katie Plourd explains:
What makes the current situation so dire is the way in which so many major risks are converging all at once: a credit crisis, volatile commodity prices, soaring government debt, rising unemployment and its attendant impact on consumer spending - the list goes on. None of those risks are lost on CFOs, of course.
As a result, more companies are looking at risk management as an enterprise-wide endeavor, rather than something for which each department is individually responsible. But just having enterprise risk management strategies and technology isn't enough, observers say. They must be put to use. Moreover, according to Floyd Chadee, the CFO of StanCorp Financial Group, who's quoted in the piece, if the system and strategy you're using doesn't mesh well with the company's culture, they will not work.
For some companies, that means appointing a chief risk officer. Others give their CFOs the risk management responsibilities. Either way, according to executive search firm A.E. Feldman, risk management professionals are in increasing demand in this season -- especially those who can handle the wide variety of risks on which companies are now focused. From a recent A.E. Feldman blog post:
Financial and risk professionals with expertise in processes for assessing credit and counterparty risk and liquidity risk are in demand along with professionals with experience in restructuring and litigation support that can provide advice on how to respond to the evolving market conditions and subsequent regulatory changes.