A recent McKinsey survey on enterprise risk management (covering 15 global oil and gas organizations and over 50 global banks) elucidates that people and performance management are perceived to be an elusive (very lucrative, therefore) pie for risk management functions, which only a handful of lucky ones get a share of. And for good reason, too—risk management practices are now standing at uncharted cross-roads across industries—whether financial institutions or in other corporate domains. Unprecedented regulatory requirements and growing complexities are slowly (but steadily) moving the needle in the global regulatory landscape, constantly setting new benchmarks in best practices, fueling the demand for new-age risk-management functions and professionals.
Gone are the days of risk-management professionals whose sole armor was their technical competence. Risk and control functions have come a long way, breaking their archaic straitjackets. New-age functions demand people be ‘credited’ with an assertive, creative, and adaptable mindset, in addition to technical skills. And with these changing skill requirements in risk and control functions, a tectonic shift is coming into play in people and talent management practices across the entire global risk management talent pool.
Although individual talent management—which revolves around drawing and nurturing individuals—isn’t a forgotten chapter, a new avatar—collective talent management—is gradually wooing talent professionals, where a heady concoction of talented risk management professionals synergize optimally to ensure effective talent management alongside other functions.
Nonetheless, within the elements of risk and control functions, the buildup of different talent-management capabilities isn’t a smooth-sailing proposition. If industry experts are to be believed, and they usually are, professionals involved in risk and control functions are bound to keep their finger on the ever-changing regulatory pulse. Talent management professionals in this domain, are, therefore, feeling the need to pull out all the stops to set the future course of their people-management approach, strategically.
Here're a few winning cards (Read 4 methodologies) to shed your "talent blues" in risk management functions:
So, if talent dearth in your organization’s risk and control functions give you countless sleepless night, the time has come to put an end to it and start 2019 on a new and effective note.