Growing Demand for Enterprise Risk Management Professionals
Enterprise Risk Management is becoming established as part of the management of organizations covering the methods and processes used by firms to identify, monitor, evaluate, and manage risks within their business. And it has gained greater prominence through legislation such as Sarbanes-Oxley, and its inclusion in ratings agencies’ credit assessments. Apart from being a matter of compliance, it also offers competitive advantage to firms practicing it by enabling them to manage not just their capital, but their entire business, more effectively.
Risk management takes into consideration risk from diverse sources. These sources include disaster recovery, business continuity planning, network security, internal policy management, human resources and personnel risk, physical security, and financial asset protection and integrity. Given this trend of increase in the complexity of risk management, with little possibility of a reduction in either regulation or events of high risk impact, the management of continuous risk on an enterprise-wide level Enterprise Risk Management is gaining widespread recognition and support. As compliance and governance programs drive the application of Enterprise Risk Management, the resulting convergence is increasing the demand for Enterprise Risk Management. This rapidly growing pace of complexity is not just limited to large, international companies; it also applies to smaller organizations. Firms of all sizes have to face an increasing array of complex legal, relationship and global risks that are continuing to grow exponentially. As a result, managements of these firms believe that their firms can benefit from the implementation of Enterprise Risk Management programs.
Proper implementation of Enterprise Risk Management initiative within a company can improve performance and produce results from risk elimination to preparation for possible problems to opportunity exposure. Coordination of efforts concerning risk management will also improve general communication within the organization, help in defining company strategy, align resources, and drive performance. While many organizations have embraced Enterprise Risk Management and provided it a key position in the organization chart, they have also begun turning to risk management consultants for advice about how to implement an effective Enterprise Risk Management strategy. As a result, risk management consulting has become a growth industry over the past three to four years, with billions of dollars in consulting revenue. And, the industry is growing daily.
Given this background of the growing importance of Enterprise Risk Management, and its adoption by firms in various types of industries there is a growing global demand for Enterprise Risk Management professionals who can understand business requirements and actualize the risk management systems to meet a company’s needs. These industries range from energy to banking and financial services, to securities and asset management, and to any firm that is exposed to the vagaries of risk. No wonder there are a growing number of consultants offering services in this field.
Enterprise Risk Management positions are available at all levels of a firm, be it the back office or the middle levels or the senior levels. With the Enterprise Risk Management consulting industry taking a growth path, positions are also available as consultants. To occupy these positions, Enterprise Risk Management professionals not only need to possess strong functional skills, but they must also possess strong personal, interpersonal and business skills in order to play a value added role in the organization. Toward this end Enterprise Risk Management certification programs are being offered to professional who wish to make a career working in this field.
For Enterprise Risk Management professionals, certification can help provide a clear, motivating path for career growth, as well as equip them with a set of credentials that will be recognized and accepted globally. Certification also provides them with membership in a community of peers that share the same skills and background, values and standards within the profession.