What Is Risk Management? (FERMA)
Historically in financial institutions, risk functions such as legal, compliance, audit, credit risk and market risk were managed in separate organisational silos. Operational risk was generally the responsibility of business units as part of their daily activities. Risk management was focused primarily on financial, predictable and quantifiable risks related to loss prevention. Since the 1980s, risk management has evolved to include corporate governance, alignment to strategic objectives, capital adequacy and stakeholder value. Additionally, regular discussions on risk management started appearing on corporate board agendas.
What's a Risk Manager? (FERMA)
The risk manager supports the company to achieve its objectives. He helps to identify the weaknesses that could threat the realization of such objectives and the opportunities. He is a coordinator, educator and communicator. The risk manager's profile is largely determined by the structure to which his actions will apply. Experienced based, this position must allow adaptation to a multitude of professional cultures (financial, legal, technical, commercial,...) and be combined with an attitude to communicate and convince.
