The evolving role of the risk manager : a study

Abstract

Throughout the passage of time risk has evolved immensely to an extent that risks which individuals faced in the past pale in comparison to those which organisations and investors are subjected to today. Globalisation, technology, complex products and transactions are just a few examples of what has caused such an evolution which has seen major organisations, such as AIG and Lehmann Brothers, file for bankruptcy and leave markets completely shattered in the aftermath. Risk however has not evolved alone. The role of the risk manager has gained considerable importance during the last few decades however do organisations really give as much importance to risk and compliance issues as they should? After the latest financial crisis risk managers faced a continuous barrage of criticism and scrutiny. Their role has never been as challenging as it is today. This dissertation focuses on uncovering the evolution of the risk manager role by focusing not only on the risks which organisations face but also uncovers the lack of maturity currently amongst organisations in terms of their pro - activeness in setting up the correct structure to align risk and compliance issues. The reasons behind their lack of pro - activeness will be explored as well as a host of other issues which try to provide a unique perspective as to why organisations are finding it excessively difficult to identify and manage risk. Risk managers will only be capable of addressing risk pro - actively if organisations deviate from siloed operations as well as align their goals with a wellestablished strategy and the appointment of knowledge workers to act as champions who address these issues.