Furthering the Exploration of Collaborative Risk Management
I’ve struggled over the years as a compliance officer and risk manager with the frustrating attitude of it’s an “us versus them” relationship. The relationship between “us versus them” is built on the constant friction between the risk managers or compliance officers and the rest of the company. I have heard this attitude and frustration a lot in conversation with other people on both sides of the relationship and it seems to be a universal relationship across multiple industries. Speaking with risk managers in other industries, the same frustration is there, all you need to do is just ask some pointed questions.
My struggle has been to understand why this is the case which has led me to realize that I’ve had a collaborative approach to risk management and compliance that was developed early on in my career. In looking around and reflecting on my multiple conversations, I realized others may not have developed the same collaborative attitude which led me to do some leadership education and research.
Through conversations, self-reflection and leadership education and research, I’ve realized several things:
- Risk Mangers or Compliance Officers who are put into a position of supervision instantly creates distrust in those people they are supervising,
- There’s friction in a company between the desire to make money and the policies and procedures restrictions that have been put in place
- Education and training results in focusing only on the technical aspects of policies and procedures
- Decision making in management silos
I’ve been fortunate to have multiple roles as a stakeholder in the risk management or compliance relationship. Roles that have been outside of the risk management department, roles that have been only risk management and hybrid roles that combine the two. This experience has allowed me to work on and further develop a collaborative approach to risk management conversations. To have a collaborative approach, conversations need to take place that will develop an understanding of:
- The level of trust on both sides of the supervisory structure
- Identify the friction points
- Understand the risk management role is beyond just the technical skills
- Make the decision process inclusive, rather than exclusive
Understanding where you are creates a starting point for moving forward. The collaborative approach will develop a trusting relationship for all stakeholders, there by creating a culture where people want to and seek to be compliant with the policies and procedures. The collaborative approach will eliminate the struggled and the frustration of the “us versus them” attitude.
My desire is to pass on to others what I’ve learned through leadership education, research and experience.