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Risk (technical knowledge)

The role of a risk manager
To assist risk committee
Exam scenario: what is the role of risk manager ? Give advise as a consultant or
director whether to set up a job for risk manager

Involve in compiling the risk information gathered from BOD and respective
department into a risk register (risk profile) for the company thereby allowing the risk
committee to oversee the risks face by the company, their likelihood of occurrence
on the organisation should the risk occur as well as the measures taken to address
them.

Undertaking workshop or seminar for controls of risks in order to create awareness

among all members of the organisation (building culture)

Serves as an in-house consultant for other colleagues on matters relating to risk

and controls.

In the regulated industry (bank, oil and mining), risk manager playing the role of
compliance officer to avoid the company being fined or business license being
suspended.

Risk (technical knowledge) 1

 The concept of embedding risk in an organisation’s culture and
value

💡 Embedding risk management is making risk management a culture of

the company characterised by members of the organisation
independently.

Two ways in which examiners would test you in this area:

1) Suggest the criteria for establishing 2) Evaluate the situation within the Co
a risk aware culture within the & conclude whether a risk aware
organisation culture can be created.

For this type of questions, cannot apply cultural web as the focus is only on risk
awareness not the whole organisation.
Methods by which risk awareness and management can be embedded in organisation
include:

Risk management training by the risk manager for all the levels of staff.

Alignment of reward system with risk responsibilities (linking the reward system to
observe the norms within the company)

Establishment of metrics (KPIs) and performance indicators to monitor and

feedback of information of risk to management. this would ensure that accurate
information is always available to the risk committee and/or board.

Senior management should walk the talk in the application of risk management in
decision making process so as to lead by example.

Risk (technical knowledge) 2

Risk (technical knowledge) 3