136. Do companies need risk champions? – Alex Sidorenko

Alex Sidorenko from RISK-ACADEMY talks about risk champions, their role in risk management 1 and risk management 2.

“Risk champions” can be of three types:

Official risk coordinators – employees, whose official duties include coordination of risk management processes within individual processes or business units. They are usually responsible for preparing information about risks, monitoring risk mitigation progress, organising risk management events or training. Maybe no longer need them.
Informants – employees, who have established informal, yet trusted relationships with the risk managers. They provide information about emerging risks or changes in the organisation processes or risk profile. A large network of informants is critical for risk managers to stay up-to-date on what is happening in the company.
Influencers – employees, who support the integration of risk management principles in the company’s activities and processes because it makes good business sense for the company or them personally. They will usually participate in the Risk Management Committee meetings and will support initiatives proposed by the risk managers.

“Risk champions” help to implement risk management elements in key business processes and procedures within the organisation. Usually, “risk-champions” are employees who are naturally motivated to effectively manage risks, such as employees responsible for project management, methodology, process improvement etc. For larger organisations, it may be necessary to identify “risk-champions” not only for key processes, but also for each geographical area where the company is represented.

At RISK-ACADEMY we have compiled free videos of lectures, seminars and interviews with Russian risk managers, as well as free templates and examples of the tools required for the implementation of elements of risk management in the organization of small and medium-sized businesses.

 

3 thoughts on “136. Do companies need risk champions? – Alex Sidorenko

  1. Hi, interesting view. I’ve recently joined a company with c500 employees. As being the only full-time risk professional resource there, I’ve relied heavily on the incumbent ‘Risk Champions’ (volunteers!) to help me understand what is happening across the business and to get first hand knowledge of the different approaches each department is taking wrt risk management (very much a silo approach to it).

    In previous risk related roles in larger / complex organisations I’ve implemented informal risk champion / sponsor type structures, to help with co-ordination of risk activities and help promote the benefits that a more joined up risk management approach can bring to the business.

    I agree in theory that within a mature risk management culture where the approach to managing risk naturally forms a key component to support to decision making/reporting etc, the need for specific roles such as risk champions may not be needed.

    1. It sounds like what you are doing is RM1. Because no such thing as ” joined up risk management approach” in RM2, quite the opposite actually. Another bad news is whatever you think risk champions are now telling you are not the real key risks. It will take you a year looking through data, facts, incidents and working with friends in the back office to discover the real risks.

  2. Hi thanks for the response/feedback. I’ll take a look into RM2 to improve my understanding and see how it can help me on my journey in the my new role

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