I admit it, this Post is going to be a bit ‘marmite’ – you are either going to like it, or hate it. The content has the potential to polarise opinion, especially if you are a ‘technical’ #CRO hanging on to ‘what was’.
For those CROs who are embracing what ‘could be’ the content will encourage you to take a leap of faith, to embrace the potential for change and challenge your own thinking and behaviour.
As set out in Post #36 – How are the challenges CROs face impacting the role? numerous articles over the last 3 – 4 years have been published describing WHAT the enlightened CRO should be thinking about. This is where I have a fundamental issue with what has been published – the vast majority of the content is not SOLUTIONS based.
We have been bombarded with various demands for CROs to become more strategic and commercial, with little debate or explanation as to what exactly that means?
The consequences of not getting this right – the WORST CASE SCENARIO – is loss of influence and at best career limiting. At its most severe, this could lead to the CRO role disappearing all together.
It was not so long ago I was talking to a #LONDON MARKET CRO who told me “I have been told by the #CEO and Board that I need to be more strategic in my approach. What do they mean?” Shortly after this conversation, the CRO left the business rather suddenly.
As a profession, we have to accept that how value was delivered in the past, will not be fit for purpose in the future.
How can we avert this potential crisis?
I have noticed a number of universal truths when engaging with CROs and Risk Functions from across the industry:
- A desire to focus on the trivial at the expense of the material;
- An obsession with procedures and processes, at the expense of key insights;
- A lack of imagination or creativity when exploring and designing solutions; and
- A reluctance to accept the potential downside of experimentation.
The following is a ‘Checklist’ of thinking and behaviours that must be developed, if we are to avert a potential crisis in the profession. Think of it as a Strategic Blueprint that can be used to constructively challenge, guide and inspire.
The above infographic is intended to help CROs develop the right MINDSET that is necessary to continue to deliver value-add activities to their firms.
Whilst the strategic landscape is dynamic and unpredictable, CROs have the right skills and capabilities to lead their firms through complicated ‘risk & reward’ tradeoffs, only if the right mindset is developed.
Reciproco provides knowledge integration across risk, solvency and strategy, including digital transformation, leading complex and unique projects in regulated sectors. Helping senior executives and management teams focus on strategic challenges to create a competitive advantage.
Darren Munday is the founder and Managing Director of Reciproco. An experienced executive with over 20 years’ global experience with multinational companies, including Chief Risk Officer reporting to the Board.
Darren is an Honorary Visiting Fellow of the Digital Leadership Research Centre, Cass Business School where he also holds an Executive MBA. Darren is a Certified Fellow of the Institute of Risk Management (CFIRM) and Chartered Insurance Risk Manager (ACII) of the Chartered Insurance Institute.
All rights reserved. Unauthorised use and/or duplication of this material without express written authorisation from Darren Munday is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Darren Munday with appropriate and specific direction to the original author and content.