Risk management requires necessary employee skills and competency to get successfully deployed within an organisation, feels Shivani Misri Sadhoo
Risk management is the structured means of identifying, assessing, rating and managing the risks faced by an organisation within the context of its financial reporting processes, operations and compliance with laws and regulations. It is designed to provide the organisation with a structured means to harvest relevant information necessary to proactively consider the implications of such risks, and what actions, if any, the organisation should take steps to mitigate those risks. The above is the theoretical definition of risk management, for some, it may sound simple but in the real business world, it’s not easy to apply. Risk management is more of a training of some skills that is pertinent for an employee to project potential competency within an organisation. Apart from that, employees in an organisation come from a range of education and experience backgrounds and most importantly, each employee has his/her own perception of what is an acceptable risk. That is why one of the key components of risk management is employee training and development. Here are the key components that top management and risk managers must keep in mind while developing a risk management training programme for employees:
Generally, organisations have specialised divisions and professionals to manage specific risks. Like there are registered chartered accountants, lawyers, auditor to take care detailed financial, law and regulations. Every employee is not meant to learn or execute these detailed technicalities. Hence risk management training should be less about risk assessments and more about risk-based decision making, planning, budgeting and investment management. Don’t teach the management how to manage risks, teach them how to do their job keeping risks in mind.
REGULAR REFRESHER TRAINING
In general, humans forget 40 per cent of what they’ve learned after 20 minutes and 64 per cent after just 9 hours. Hence an organisation must emphasise on conducting regular refresher training of risk management. This can be done by recording all risk management training sessions on video. So, the company should initiate availability of videos available on the corporate intranet. The organisation can then send employees annual or quarterly reminders to watch videos as a risk management refresher.