Vince Shiers, managing director of consultancy RQA Group, on the role of risk managers in a crisis
When it comes to building resilience pre-crisis, Shiers says there needs to be a focus on prevention, including an effective plan and well-trained staff.
“The crisis team should receive annual crisis training in managing a range of crises considering various scenarios,” he explains.
“There should be annual simulations considering varied scenarios relevant to the company, varying the complexity to reflect team knowledge and capability, as well as business complexity.”
Shiers says risk managers often work in a complex management structure where they have risk management objectives, but do not always have teams of personnel reporting to them that can implement the risk management strategies.
“Risk managers therefore have to work with other senior management to ensure risks priorities are represented.
“They will ensure the risks are mitigated where possible and insurance cover is purchased where the risks dictate.”
He adds: “During an actual incident, the risk manager will often be the person who has contact with external resources linked to the insurance, such as brokers and specialist consultants.”