Currently, media is brimming with stories of corruption, greed and unethical behavior in the corporate world. Risk managers are targets of public ire. All are under fire – compliance officers, fraud investigators, auditors, etc. The stakeholders and public are rightly questioning their commitment and capability in discharging their duties. Under such circumstances, a few risk managers must be contemplating whether it is the right time to change and take up different corporate roles. Let us address the three main aspects of the decision.
1. Why am I in it?
Risk management roles have two sides. The positive aspect of the role is that it is intellectually stimulating as risk managers learn various facets of the organization. On the flip side, it is a thankless job as their advise and reports rattle most business executives. They never win a popularity contest, are not welcomed with garlands and operation teams think of them as party poppers.
Risk managers to function diligently need high emotional intelligence, integrity, courage and an altruistic temperament. They have to stand up and give negative information to senior managers, even at the risk of being shot, for the betterment of their organization. With the same qualifications and experience, they can get a line job, most probably a better paying one. Hence, why should they continuously face flak, stress and heart-burn? The reason is passion. It goes back to why a person chooses a specific field. As Confucius said longtime back – “Choose a job you love, and you will never have to work a day in your life.”
2. Can I do other jobs?
Risk management is a specialized field. The knowledge level required is so high, that a credit risk manager cannot do the job of an operational risk manager or vis-a-versa. K.Anders. Ericsson in his paper “Making of an Expert” analysed that it takes 10,000 hours of incremental learning to become an expert in a specific field. That is, it approximately takes 10 years to master an area. He categorically mentioned, there are no born geniuses, and there is no substitute for hard work.
Stories of success of Bill Gates and Steve Jobs, leads us believe that college drop-outs made it big, so why can’t we? Gates and Jobs, both started learning and continuously working in computer field from the age of thirteen. By the time they dropped out of college, they had 8000-9000 hours of studies and work time in computers. Hence, it isn’t surprising that they could leverage their knowledge successfully.
Therefore, the choice is whether one wishes to be a generalist or a specialist. It again comes back to, whether a person wishes to work for money or fulfill their passion. Normally, if a person works in an area they are passionate about, they find their life more meaningful and rewarding. Their happiness and positive attitude translates into more successful careers. Hence, aim at being an expert in your area.
3. So many failures!
Should the risk management failures dishearten risk managers to the extent of changing careers? I think not. At this time, the world requires well-trained and dedicated risk managers. This is a century of chaos; organizations are in for a roller-coaster ride in this decade. Risk managers can steer them into safe harbors, facilitate them in leveraging upside risks and mitigating downside risks. When the times are tough, the tough get going. Now risk managers need the stamina and perseverance of sports people. Let us take a leaf out of Michael Jordan’s career –
“I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”
Risk managers in this age of turbulence can play a pivotal role in shaping the future corporate world. To do so, they need passion and commitment. I am sharing with you Isabel Allede’s speech on tales of passion. Isabel is awesome – witty and inspiring at the same time. I hope you too become a dedicated risk management activist after hearing her. Just discover your passion.
Making of an Expert – K. Anders. Ericsson