Page 21 - Insurance Times August 2018
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The kind of solutions which risk managers suggest and Many risk managers eventually choose to become freelance
implement are likely to include insurance, health and safety contractors. Ironically, this career path has a lot more risk
policies, disaster recovery measures and business continuity involved, though self-employed risk managers can earn a lot
plans. Once these have been put in place, risk managers will more money.
often return to organisations again in the future to conduct
additional audits and assessments. Conclusion:
Position level/Reporting Structure: Professor Yacov Haimes, Director of the Center for the risk
Management of Engineering Systems at the University of
This person typically reports to the Executive Director, Virginia in a write-up titled "Total Risk Management"
President or CEO. They are identified as the top Risk Officer defined the role of Risk Manager as :
in the company and may be the CFO or COO if these
positions are identified as the person responsible for all "A systematic, statistically based, and holistic process that
activities relating to risk within the organization. builds on a formal risk assessment and management and
addressed the set of four sources of failure within a
Salary and Benefits : hierarchical multi-objective framework :
a) Hardware failure
Depending upon the nature and set up of an organization
Risk managers can earn a handsome salary and benefits. b) Software failure
However, it's likely that the organization will allow a new
Risk Manager to start career as a risk assistant or risk c) Organizational failure
analyst.
d) Human Failure
Risk assistants tend to earn between Rs.3,00,000 and Roy Amara and Andrew Lipnski illustrated why the role of
Rs.5,00,000 per annum, while risk analysts are usually on Risk Manager is becoming an essential discipline in an
around Rs.5,00,000 to Rs.10,00,000. Once the individual uncertain society :
eventually progresses into a risk manager position, he could "The environment the Corporation faces today-and will face
earn anywhere between Rs.10,00,000 to Rs.1,00,00,000 a increasingly in the future - is markedly different from the
year. past. The most important difference is the much higher
levels of uncertainty at which they operate. Corporate Risk
Working Hours : Managers are now confronted with a much wider variety
of economic, social, regulatory and competitive factors
Risk managers tend to work nine-to-five, although as one influencing performances. At the same time, the level of
reaches more senior levels, one may be required to put in understanding of how these factors, singly and jointly,
extra hours in the evening and at the weekend from time influence achievement of corporative objectives is not
to time. For the most part, he will be working in an office keeping pace with management needs."
environment, but occasionally he will be required to travel
to other locations for client visits. The trick for the Risk Manager is to discover not how to
avoid risk, for this is impossible, but how to use risk to get
more of the good and less of the bad. The search for safety
is a balancing act.
The best suggestion came from Christ Best, the editor of
Foresight, who once wrote :
"Why should a business which plans its activities no more
than five years ahead, at the most, be concerned about the
latent disase responsibilities which it might be incurring but
which are unlikely to manifest themselves for ten, twenty
or more years?????? Or about the accidents which have a
one in 150 years probability ????? This the essence of the
role the Risk Manager faces…………" T
The Insurance Times, August 2018 21
