CRO preparedness: Managing interconnected risks with hindsight, insight, and foresight
While risks are always present in everyday operations, are risk management teams and organisations prepared to respond to future risk that are more severe and more frequent? Thabile Nyaba, Former Chief Risk and Sustainability Officer of OMI and Past President of IRMSA, outlines a 3-way approach that balances traditional and future-forward approaches.
CROs can balance long-term stewardship with short-term pressures by operating across “triple time zones”:
- Hindsight: lessons learned and playbooks
- Insight: current risk culture, executive decision-making, and challenging assumptions
- Foresight: risk sensing and recognising interconnected risk threads
She emphasises strengthening the risk management backbone through operational support and technology to automate and digitalise routine work, enabling CROs to focus strategically. Also critical to the strengthening of risk culture is embedding risk management across all organisational levels and developing bench strength through mentoring, cross-generational coaching, and junior risk committees.
Why do organisations need to rethink the nature of risk
The reality of modern enterprise is such that risks are interconnected and can disrupt established norms. Thus, the key challenge lies in recognising these connections, enabling organisations to build resilience and sustainability amidst uncertainties. The foundation of building resilient industries, nations, and regions is deeply rooted in robust preparedness strategies.
Balancing long-term vision with short-term pressures
Chief Risk Officers (CROs) find themselves at the heart of this endeavour, balancing long-term organisational goals with immediate challenges. This delicate balance requires a dual focus: maintaining day-to-day operations while simultaneously preparing for future disruptions. It demands a shift in mindset and the capacity to operate within what is termed the "triple time zone" framework.
- Hindsight: Incorporate lessons learned from past disruptions, utilising established playbooks to form a strong foundation.
- Insight: Cultivate a strong understanding of current risk cultures and decision-making processes. Examine assumptions at the highest organisational levels, ensuring they are continually tested and challenged.
- Foresight: Develop the ability to predict potential future disruptions. While predicting the future remains complex, identifying threads of interconnected risks is essential.
CROs must also support themselves with a robust operational backbone, freeing them from daily distractions to focus on broader perspectives. Leveraging technology to automate and digitalise risk management processes further enables CROs to maintain vigilance over potential emerging threats.
Embedding risk management across organisational levels
Effective risk management must permeate every stratum of an organisation – from strategic and tactical levels to operational and process-oriented layers, and even down to individual projects. This comprehensive approach empowers organisational members to take ownership of risks and align their strategies accordingly.
Fostering future risk leaders
Preparing for future uncertainties also means investing in the next generation of risk leaders. Developing a strong pool of talent capable of navigating complex risk environments ensures continuity and robust decision-making capabilities. Mentoring emerging talent through mechanisms like junior boards and risk committees can provide invaluable learning experiences and opportunities to understand organisational decision-making processes.
Embracing uncertainty
Ultimately, uncertainty heralds both challenges and opportunities. It opens a field of possibilities where innovation and foresight can thrive. By embedding robust risk management practices and fostering agile leadership, organisations can navigate uncertainties effectively and seize opportunities that arise from an ever-evolving risk landscape.
Incorporating these strategic elements ensures that organisations are not only prepared for current risks but are also poised to adapt to future challenges. With this approach, the financial risk management community remains at the forefront of navigating the complexities of today's global business environment.
Explore what’s next for CROs and risk managers from leading practitioners and experts at RiskMinds International. Save the date – 16-19 November 2026, London!
