Risk managers fare well in pandemic but fell short on risk identification

Risk managers have generally fared well in the pandemic and boosted their reputation but many were found wanting when it came to identifying the risk in the first place, according to Airmic board members. Airmic’s new chair Tracey Skinner said that with hindsight, risk managers could have done a better job of identifying pandemics as a threat before Covid-19 hit. Although the risk has featured in top ten lists published by experts and in surveys over the years, it seems focus had slipped. The World Economic Forum, for example, warned at the beginning of this year, just before the pandemic struck, that more attention was needed on the risk. And Ms Skinner, who is also group insurance director at BT Group, thinks this has been borne out by the experience of Covid-19. “If hindsight can teach us one thing, it has to be in the risk identification area. This is where there has been a weakness, because I think a lot of organisations didn't have a pandemic either high up on the agenda or on their risk radar at all. So I think that is the lesson to learn,” she said. But Ms Skinner believes risk managers have proved their worth since the outbreak, particularly through implementing business continuity plans, and been highly valuable. “I think what has happened since Covid-19 has been tremendously well received by all organisations. I think, in particular, business continuity plans have shown they can really respond and are flexible and are adaptable. I think that is where senior management have really appreciated their risk teams,” said Ms Skinner. Airmic’s CEO John Ludlow believes the risk profession has fared well during the pandemic, but said it may have caused those not used to working at strategic level, or able to make the step up, some problems. “Overall, the profession has done pretty well… We have certainly not had any criticism that standards haven’t been good enough. I think most organisations think their risk managers have been incredibly helpful and been thankful they have made the investment down the years,” he said. “I am sure there are some individuals that have been overstretched. I think you have to remember that job roles are at operational, tactical and strategic levels. When a crisis goes right up through the roof, it becomes very strategic. If organisations have a very operational risk manager, that person is going to be stretched. But if you have strategic risk managers operating at a senior level, this has been a great opportunity to shine – and I think a lot of our members have,” he added. Airmic’s deputy CEO and technical director Julia Graham said the pandemic has “generally boosted” the risk management industry’s reputation and created an opportunity for risk professionals to show their value. “Our pandemic survey found that the crisis has given an opportunity for a lot of risk professionals to put their hands up and say, ‘we can help at strategic level’,” said Ms Graham. But like Mr Ludlow, she suggested the crisis has shown that some Airmic members need slightly different knowledge and skills to succeed at the level needed to tackle such catastrophic risk.

Risk managers fare well in pandemic but fell short on risk identification

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