Financial crisis highlights important role of risk managers, panelists say

The recent global financial services turmoil may produce opportunities for risk managers to have their voices heard within the upper echelons of their organizations, a panel of international risk managers told delegates attending the 33rd Annual Risk and Insurance Management Society (RIMS) Canada Conference in Toronto.
“We all know that there are two theories of risk management in the financial institutions [following the recent market turmoil],” said panelist Carl Leeman, chief risk officer of the Belgian company Katoen Natie Group. “The risk managers in those institutions either didn’t do their job, or they were not heard. I think we all know that it was the second one.”
Companies surviving the turmoil will have had their wake-up call, Leeman added. “The future for risk management seems more bright than ever before because now everyone will know that you will really need a risk manager in your company.”
RIMS president Janice Ochenkowski said she saw “a phenomenal opportunity for risk managers” arising out of the financial crisis.
The opportunity is “two-pronged,” she said. First, risk managers should do an internal assessment quickly of the organization’s risks.
Second, they should open up a dialogue with management. “Whatever level of management you are in communication with, send out some information, press releases or credit analyst reports,” Ochenkowski recommeded. “Whatever is relevant to the risk you’ve identified.”