Speed, breadth of risk requires risk professionals be at the forefront of their organizations

RIMS Canada Conference 2013 – The speed at which risk is coming at organizations today clearly illustrates the need for risk professionals to be at the forefront of their organizations, John Phelps, president of RIMS, said Monday during the opening ceremonies of the 39^th Annual RIMS Canada Conference in Victoria, B.C.

“We have risk coming at us faster and bigger than we’ve ever had before,” Phelps told attendees of the conference, being held Oct. 6-9.

“We have risks that hit our companies not in terms of months or years, but in nanoseconds. We have reputation risk that can happen within the blink of an eye, whereas in the past, it required the publication of a newspaper or magazine,” he said.

“So, if there was ever a time when risk professionals should be at the forefront of their organizations, it’s now. At the same time, the profession is experiencing very significant change,” Phelps pointed out.

Risk nowadays is not only about speed, but it is also about breadth. “Risk management” is evolving and a continuum has been created that runs from traditional risk management to enterprise risk management and strategic risk management. “Never before has there been such opportunity for risk managers to be part of strategic decision-making in their organization,” Phelps suggested.

Enterprise and strategic risk management, he noted, “are two concepts that really take the lid off the opportunity for risk professionals today,” he added.

“We have risk that is increasing at a rate and depth that we’ve never seen before coming together with this evolution within the profession for risk managers to become more strategic,” Phelps said. “The challenge at RIMS is to develop those products and services that address the breadth of risk, the changes in the profession and build for the future.”

As RIMS president, Phelps said his three areas of emphasis have been how to create value within organizations, global reach and developing leaders. With regard to global reach, RIMS welcomed two new chapters earlier this year.

“We realize we can provide that local reach to other countries, not necessarily with bricks and mortar, but taking advantage of the technology that’s available to us now that we didn’t have even 10 years ago,” he said.

With regard to developing the next generation of risk professionals, it is necessary that they be engaged and supported. “I think that in the future we’re going to see a society that risk management takes place across a company; it’s not one department. If we recognize that and we see that as the future, let’s bring them (young professionals) into the discussion now,” Phelps said.

“We are in a state of change in this profession, but the change isn’t bad,” he emphasized. “What the future can hold for us in risk management is engaging an entire organization,” he said.

“It’s a profession that will not be computerized out of existence. It is something that is needed in all organizations and embraced.”