How AMRAE will shape tomorrow's risk managers

The times they are a changin’ and risk managers need to change with them if the discipline is to continue to increase its profile.

“There are certainly a lot of challenges right now for risk managers,” says Brigitte Bouquot, director of insurance and risk management at aerospace group Thales and the new president of French risk management association, AMRAE.

“There are internal challenges and external challenges. This is why I wanted to take this new role. I have a feeling that the job is changing very fast and it is not at all what it was ten, or fifteen, years ago. We need to adapt.”

According to Bouquot, as the role has developed beyond buying the right insurance, risk managers need to become experts in new areas and this requires new skills.

Risk managers need to understand their company’s operations in detail and forge a strong network across those operations – as well as ensure they are connected to the decision-makers at the top. “The role is now much broader and involves both strategic decision-making and the day-to-day operating of the company,” she says. “While you still have to make sure you are compliant and that the risk management programme is in place, you also have to be connected to the executive committee and be able to advise them on their decision-making.”

Bouquot believes that AMRAE’s role in this new environment is to be there to help risk managers develop their professionalism and ensure they are properly equipped for the job. “Certification is part of this and I want to build on what I have inherited here to develop our standards,” she says.

“But I also want to help risk managers raise their profile and help them engage with senior management and better develop their role.

“There have been remarkable improvements in the way risk managers are trained and the way their baselines have been established. But it is an ongoing process that I am very happy to be continuing. I believe we can add value to the certification process; make it even more visible. I also want to be speaking to more and more risk managers to make sure they are aware of all the tools they can access.”

Valuable skills

This is especially important as in France many risk managers – including Bouquot herself – are appointed to the post from roles outside risk management because they have the trust of senior managers, and while they bring valuable skills they may need some support adapting.

“I was not born in risk management,” says Bouquot. “I have done many things in my past and worked with the chief executive, with general council. I am also a manager. I am an example of how our profession is broadening and hope I can use this experience to help risk management develop its professional community by connecting people who may not normally speak to each other.

“It’s very interesting to see who is being brought into the profession and I want to build on this to make the job more visible – whether through my networking or my knowledge of French industry, I can network with key managers everywhere in the business.

“It is a good time to be a risk manager. It is a big challenge, and we may feel a little isolated as a result, but this is exactly why the network of risk managers is so important.

“Very often firms will only have one risk manager – it is not like many other roles where there may be a sizeable team – and so being able to talk to other risk managers at other companies is very important and this is where AMRAE comes in.

“We offer the chance to share and discuss issues and offer advice – especially when a risk manager wants to find out about aspects of business outside finance.”

Systemic risks

Key to this conversation will be the 2016 AMRAE conference in Lille over February 3-5, which aims to address some of the complexities presented by the systemic risks we all face, such as economic risk, political risk, social risk – and climate change.

As such there will be opportunities to learn about the Action Plans proposed by COP21, explore how risk managers can help their employers to become more resilient – and how they can expect to be supported by the insurance market.

In addition, the tragic events in Paris last November emphasise the need for a new approach by everyone to the risk posed by terrorism and political violence.

“Terrorism Exposure has became global,” says Bouquot. “It is no longer about specific projects in foreign countries requiring financial coverage. Risk Managers are now working closely with both their security directors and human resources departments to protect people and assets in every location. Increasingly, we see a “global security” policy being deployed across the company. Meanwhile, although good insurance coverage exists, it remains fragmented and can vary in different geographies. It has to become global and lean.”

The bottom line is that the world is becoming a more and more risky place and the insured, insurer and the broker need to work together to find the right solutions. “Technology and cyber risk are so challenging now,” says Bouquot. “The supply chain risk is enormous, because of globalisation. You also have human risk, which is becoming more and more important. Our ways of working are changing so fast that they create a cocktail of risk. “Society is becoming more and more risk adverse and more is being asked of companies as a result.

“When all of this is combined with the fact that everyone is almost instantly aware of what is happening – and can communicate instantly – it is very easy for bad news to affect the share price and the brand very quickly.

“The risk manager has to be properly educated and supported so that they can be strong enough to face these new challenges – and AMRAE is here to do that.”