CGMA® suMMAry

WhAt does it tAke to be A risk leAder?

A guide to risk leadership

In collaboration with

introduCtion

The risk landscape is constantly evolving and becoming more complex. Being able to identify and ‘manage’ all the risks to an organisation is no longer possible.

The increasing complexity of the business environment calls for a new approach to managing risk, one that promotes resilience in a heavily interconnected and integrated world. An organisational risk leader will help drive the success of the business and take charge of the risk agenda.

CGMA designation holders are well prepared to take on this role.

© 2015 Korn Ferry. All rights reserved.

The experience and qualities required to fulfil these requirements

Risk’s ‘culture-carrier’; establishes the right culture with the board and senior management team

Understands the present status of risk culture and drives a winning strategy to a mature culture that is right for the business

Creates an open culture where learning from mistakes is possible. Builds a network across the business to embed appropriate risk culture

Creates and maintains a pragmatic, business-focused framework, utilising management information to support risk/reward business decisions and culture

Considers internal and external factors in the design and coverage of the function: creates a fluid structure; able to continually improve, adapt and evolve

Creates a risk function that can partner the business, enabling it to take ownership of risk with the risk function being the guardians

Helps board set the risk appetite in line with the business model and acts as wise counsel and effective challenge to CEO, board and broader business

Aligns business with balanced risk/reward approach for effective commercial business decisions

Navigation of board and executive relationships

STRATEGICPARTNERSHIP

ORGANISATIONALCAPABILITY CULTURE

EXECUTIVELEADERSHIP

Creates vision and purpose for the risk function; inspires excellence in business partnership to create credibility and value

Creates an enterprise-wide function that balances framework, policy and process with forward-thinking capability and navigation

Constantly considers future challenges including succession and ‘future-proofing’ function

WHAT DOESIT TAKE TO BE ARISK LEADER?

FiGure 1: What does it take to be a risk leader?

CourageCourage of convictions

Able to communicate in a balanced and considered manner

organisational & stakeholder

navigationInfluence and independence

Understands the business and individual drivers; navigates

well to deliver responsibilities

Impacts in all environments and interactions

How to develop the skills of a risk leader

An effective risk leader creates and promotes a culture of quality decision making. Management accounting is at the heart of quality decision making, guided by the Global Management Accounting Principles©. Risk management is one of the practice areas of the principles, and risk leaders who adopt the four principles of influence, relevance, value and trust will be perfectly positioned to deliver on the key components of the role to enable quality decision making for the organisation.

Learn more about the principles at cgma.org/principles

The CGMA Competency Framework is the foundation that demonstrates the relevance and capabilities of a CGMA as a trusted finance and

business strategist. The Competency and Learning website provides access to online courses and resources to assist future risk leaders improve their skills and knowledge on risk management.

Enhance your skills and knowledge at competency.cgma.org

CredibilityBrings instant respect

A true business partner

A passion for the utopia of balanced risk/reward

business approach

integrity, ethiCs & values

In every aspect of their role

Always focused on doing the right thing

Integrity at all times; the standard bearer

for what is right

business model

Purpose, culture values

Courage

Courage of convictions

Able to communicate in a balanced and considered manner

CommuniCationAt all levels

To all audiences

Crisp, clear, distils

With impact and influence

© 2015 Korn Ferry. All rights reserved.

FiGure 2: What are the qualities of a risk leader?

Learn more about risk leadershipSee the full Tomorrow’s Risk Leadership guide and toolkit at cgma.org/riskleadership

Read more about the current risk landscape, risk oversight and the importance of risk leadership in organisations at cgma.org/risklandscape

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