Enterprise Risk Management (ERM), noted as a growing, resilient career, has become a rejuvenated field as both risk and technology change. As risk becomes more varied, the nature of business has to change to deal with these risks and there has been a marked increase in the number of businesses looking for skilled risk managers.
Many careers in a COVID-19 world have proven fickle, especially those that have not been able to shift with the times. There are, however, certain roles that have conversely grown and adapted to the crisis. In a world where everything we know about risk has changed, careers will have to adapt or die. If you are seeking to build a new career that can survive, keep on reading to discover just how you can do this in ERM.
What is Enterprise Risk Management?
In order to choose and plan a career in ERM, one would first need to establish the answer to what is enterprise risk management? Essentially ERM is a business strategic planning tool used to identify and then manage risks related to the business/enterprise objectives. It is primarily from the field of financial services but also used in all other businesses that need to identify, quantify, and deal with risk. In these uncertain times, with COVID presenting itself as the new big risk with a myriad of associated risks, it is more important for businesses to future-proof themselves with improved, more current means of risk assessment for risk reduction or avoidance. The aim is to prioritize the risks faced by the enterprise and then plan how these will be managed.
Why Start a Career in Enterprise Risk Management?
From a career point of view, it follows that as the nature of business becomes more uncertain, the need for skilled professionals who are able to maintain profitability and even grow the business will increase. The need for risk management specialists has grown significantly and will continue to increase. There are numerous reasons to consider this as an entry-level career with undergraduate degrees in the field or as an add on to existing qualifications.
Risk has always been and will continue to be a key component of a manager’s strategic planning process. While this was initially managed through insurance, it has become more strategic to plan risk avoidance and reduction to lower insurance premiums.
The role has changed over time as access to business data increases and becomes more scientific. ERM, which uses data science has thus become cutting edge and requires a new breed of risk managers to forge the way ahead.
Understanding that ERM has a strong future then makes the planning worthwhile. There are a number of routes to go, but most of the tech writers out there advise starting changes to your career online during the lockdown. Now is the time.
The Starting Point
Risk management can be studied online, and several offers allow for some very practical courses while you work. Being good with large data sets would also be a good starting point, as the future of all risk management will now be big data and data science. There is a growing demand for enterprise risk managers so, if you are looking, it is a good option for a long-term job with diversity in tasks that will do well in the good times and the bad times.
Are you that person? If you are forward-looking yet able to wade through historical data and understand its relevance for the future, then a career in ERM may be for you.