I have chosen an article needed to be used: WHERE ARE YOU on the RISK MANAGEMENT

Question

I have chosen an article needed to be used:WHERE ARE YOU on the RISK MANAGEMENT CAREER PATH?

and need someone to compare Dr.Kallmans techniques to the techniques recommended in A second article that I have not given you you researched  Explain why you agree or disagree with each authors recommendations. Describe other factors you believe should be considered in risk management. The assignment should be comprehensive and include specific examples

I have pasted the article below::::

The risk management discipline is evolving and expanding. Increasingly, risk management practitioners are shifting their focus from event or financial risks to a broader perspective that encompasses operational, enterprise and strategic risks.

Like in any other profession in transition, however, not everyone will be ready. Some practitioners will resist the change, while others will wait until they receive greater clarity about what filose changes will ultimately look like before taking action.

Nevertheless, change is inevitable. Not only will future risk managers have new and different responsibilities, but the skill sets tliat will be required to tarry out these new responsibilities will have changed as well.

While this transition from traditional risk manasewent to an enterprise or strat~c approach hegan morn than a decade ago, it will rake sevthl more years befbrc the majoriry o risk managtrs are indeed practicing enterprise risk management. S0 peshaps there is no better time than now kr today's risk nwiagers to take a step back toconsider their present and finite career path.

In order to do so, risk managers should keep three key questions in mind. Firsts where is my current postden along the career "S-curve?" Sccond do I have a professional brand that matches my career goals? And lastly, how d0 I plot a profrasional rebrinding campaign to achieve ty career goals/

The Career S-Curve

The "S-curve" framework is a model typically associated with describing technology and product life cycles. The S-curve illustrates, from an economic perspective, the performance of a new product oi innovation from introduction to adoption to growth to maturation. The S-shaped curve is common in many industries and has been adopted here as a tool to consider both the future of the risk management discipline and the risk manager skill sets that will be required to match the disciplines evolution.

Above, Exhibit 1 indicates how risk managers' skill sets and value increase as they devote more time, effort and education to hone their craft. As an example, consider a typical working career of 40 years (age 25 until retirement at age 65). At age 25, the risk manager graduates and secures initial employment. As time passes during a working career, there are variables that shape the individual's career S-curve.

One common variable is continuing education or professional development. The education enables new skill sets that enhance the risk manager's value. The greater the effort exerted into personal development, die greater die value of the risk manager. The outcome and shape of the S-curve is determined by the combination of the timing, diversity and complexity of the educational programs and experiences, and the value those projects contribute to the organization. These variables and others) encountered along the career S-curve shape the risk manager's career.

The height of the curve can also be thought of as the professional brand that each person has built for themselves. And, like any other brand, it is important to maintain and strengthen ones personal career brand. It is critical that a professional know where they are positioned on the curve so that they may plan ahead and make adjustments as needed.

However, all S-curves are not static, smooth or (as an economist might say) "monotonie." That is, the S-curves can have breaks or "discontinuities." These events are caused by opportunities, such as the development of a new technology or a new approach to risk management, that offer chances to adjust one's career trajectory.

The ERM Discontinuity

In the world of technology, a discontinuity is caused when an innovation occurs that disrupts the assumed or perceived S-curve trajectory. For example, consider how the music industry, and everyone's career in that industry, was forever changed by Apples iTunes. Or think how Apples iPad tablet is disrupting the traditional computer business and everyone linked to it.

For risk management professionals, enterprise risk management is the discontinuity in the traditional risk manager's career S-curve. The result is an upward shift in value as shown in Exhibit 2.

In this case, the enterprise risk management discontinuity represents a break ftom a flat or mature career path. It is replaced by an elevared set of ERM skills. These skills make die risk professional more valuable to the organization resulting in an enhanced career path.

A Window of Opportunity

The evolution and expansion of risk management has been driven in large parr by enterprise risk management. This is creating a unique window of opportunity for risk managers to take advantage of the very discontinuity that ERM 's evolution is causing. While ERM has been practiced in various forms for some time, the vast majority of programs are audit and compliance based. However, CEOs are becoming skeptical about the value of ERM beyond audit and compliance and now questioning the resources allocated to compliancebased ERM programs.

Fortunately, the next step in ERM's evolutionary process has already begun. In many companies, industry leaders are bringing ERM into the strategic planning process. This better positions risk managers on a path to create new value for their organization. ERM's evolution also coincides with two other big picture shirts taking place in the overall risk management space.

The first shift pertains to corporate governance. Dodd- Frank section 165 mandated the formation of boardlevel risk committees at large, publicly traded financial firms like JPMorgan Chase, BANK OF AMERICA, Travelers and The Hartford. But other companies, including GENERAL MOTORS and GENERAL ELECTRIC, have decided to form similar risk committees even without regulatory pressure.

Over the course of the last 18 months, other smaller companies have also formed board-level risk committees, including Evansville, Indianabased Old National Bancorp. While the bank has only a $1.2 billion market capacity, it has nevertheless recognized the added value that ERM board-level committees can afford. The formation of a board-level risk committee is a trend that will continue as the risk management community at large comes to view this development as a governance best practice.

The second shift is philosophical. It requires a change from thinking of risk management as always dealing with negative outcomes to understanding that it is a coin with both heads and tails: an upside and a downside. The upside of risk becomes an obvious priority when ERM is incorporated into the strategic planning process. As the creation of one-, three- and five-year strategic plans becomes common, both threat and opportunity assessments will be made - all with the goal of creating a more achievable strategic plan.

Rebranding Risk Managers

As ERM becomes a more widely adopted best practice, it is essential that risk professionals make a serious evaluation of their career paths to make sure they are keeping up with the expanding demands of their profession. By determining where they are on their career S-curves, they will have a better idea of their professional brand, how it matches up with their career goals and what, if any, changes need to be made.

The time for this self-assessment is now. The rapid evolution and expansion of the risk industry requires risk managers that possess cutting-edge skills and knowledge. In order to stay relevant, a risk management professional needs to develop a plan to stay above and in front of other risk managers' S-curves. With the proper plan for reevaluating and rebranding, the ERM manager will be well-positioned for career advancement opportunities.

Of course, there is another option. Without ERM, risk professionals can simply setde for a leisurely stroll down their career path. This journey will result in a slow growth in value to a mediocre maximum. But by putting in the effort to learn and incorporate ERM into their skill sets, the risk professional will travel a path that will be much more rewarding - both personally and professionally.

Sidebar

WHlLE THE TRANSITION FROM TRADITIONAL RISK MANAGEMENT TO AN ENTERPRISE APPROACH TO RISK MANAGEMENT BEGAN MORE THAN A DECADE AGO, IT WILL TAKE SEVERAL MORE YEARS BEFORE THE MAJORITY OF RISK MANAGERS ARE INDEED PRACTICING ERM.

DODD-FRANK SECTION 165 MANDATED THE FORMATION OF BOARD-LEVEL RISK COMMITTEES AT LARGE, PUBLICLY TRADED FINANCIAL FIRMS LIKE JPMORGAN CHASE, BANK OF AMERICA. TRAVELERS AND THE HARTFORD. BUT OTHER COMPANIES, INCLUDING GENERAL MOTORS AND GENERAL ELECTRIC, HAVE DECIDED TO FORM SIMILAR RISK COMMITTEES EVEN WITHOUT REGULATORY PRESSURE.

Explanation / Answer

Risk management:

Risk management has become an integral part of an organization. Expectation from the risk managers are increasing in order to meet up with the increasing competition and changes in the market. Currently the risk management techniques are having broader spectrum which covers operational, strategic and the entire enterprise besides being focused only into the financial risks. ERM (Enterprise Risk Management) is the need of hour and market is expecting the risk managers to possess more skill sets in managing the ERM. But this change is not being accepted by all due to various professional requirements .

Dr. Kallman emphases that risk management is essential for all the organization and therefore clearly explain his thoughts about the techniques to be used by the managers in question form. The three important questions to be asked by the risk managers are: What is their current position in the S-curve? Whether their professional brand is attaching with the career goals? How should professional re-branding should take place in order to achieve these goals? . Changes are not accepted by all, in this case some managers are not ready to accept such changes but others are waiting till the changes are being well narrated, as this is will be beneficial in implementation. ERM is inevitable but the acceptance to these changes is taking place at slow pace. The fact is that future managers must possess these qualities in order to sustain in the market as expectations from them are higher .

Career S-curve is the technique described by Dr. Kallman with regard to risk evaluation. This S-curve is associated with explaining about the technology and the product life cycle. This curve

provides an explanation from economic point of view about the performance of the new product from the introduction of the product to adoption of the product, from adoption stage to growth stage and finally from growth stage to maturing stage . This S-curve is being widely used and accepted by many organizations and thus it must be adopted in the process of risk evaluation and in determining the future career scope into risk management. This covers the entire business of the organization which is essential to be addressed by the risk managers in future .

There are cases where this S-curve can be discontinuous, they need not be smooth always, and the reason for such breaks can be due to opportunities like development of new technology, which can be compared with the ERM discontinuity. Innovation can also result in discontinuity as this may disrupts the normal S-curve trajectory. In this case, Dr. Kallman has used the example of Apple iTunes which brought dramatic change in the music industry; similarly Ipad of Apple is disrupting the use of traditional normal computer system. All those who are directly related with these business encounters a discontinuity in the S-curve .

Risk management is a technique used for managing the future risk that will be faced by the company. From above discussion it is clear that risk management of the company should understand the importance of ERM and discontinuity in the traditional risk management

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