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How do you convince a doubting executive to invest in risk management?
By David Rogers, Global Product Marketing Manager, Risk, SAS
I often hear of and see this situation played out: It’s time to make an adjustment to the risk management strategy at the financial services institution, and the risk team is nervous about what approach will help get the necessary resources.
Of course, there is no one-size-fits-all, magic formula, but I have a three tips that may help you in your presentation:
- Help your Chief Executive Officer understand the current value that the risk team brings to the business in terms of profitability and protection. Present that information in numbers the CEO can really sink some teeth into.
- Make the new investment in risk management in terms the CEO can relate to – in other words, clearly explain the benefit to the company’s bottom or top line. ROI, ROI, ROI.
- Show risk management as a central plank to the institution rather than an expense – dispel the myth.
In recent conversations that I have had with banking clients that have invested in risk management, it has been both business and risk management collaboratively working together that make their business a success.
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