Authored by: Sidney Mongala, CRM Prac Member at The Institute of Risk Management South Africa (IRMSA)
The way we do business today is 1000 times advanced than it was done in the last millennium, 100 times advanced than was done in the last century and 10 times advanced than was done in the last decade.This is an indication of how rapid life changes.
The more our lives are advancing, the more the need for advanced ways of doing things, the more complex the risk environment evolves.
This is therefore the driver of future business successes and determinant of future business traits and trends. As futurists and trend analysts project the future ahead, businesses should likewise be positioned for the advanced and sophisticated ways of doing business.
Future Chief Risk Officers (CRO) should thus not be left behind but partner with businesses in crafting future fit business models and strategies.
Thus competing with AI and Robotics in this 4IR era which might lead to diminishing credibility and relevance of human intervention and interface.
The way we do business has changed such that we don’t use much physical money anymore to do business as we venture into this 4IR era.
Cryptocurrencies are here to disrupt the old way of transacting and they are the future waves of doing business.
Likewise CROs should continue evolving the way they are doing things and improving their competencies to feed the new waves of doing business and be able with reasonable certainty to advice businesses to be competitive and business savvy to capture the rapidly changing 4IR market share.
With these advancements in the way business is done these days, surely I can safely say disappearing are the days of our lives wherein CROs:
Future CROs therefore need to position themselves to be business partners and advisers on business strategies, operations and decisions on the go; “Just In Time (JIT) Risk Management Advisory System and Processes”.
The CROs of the future should therefore possess the following traits:
The future CROs should be engaged in every discussions, planning, decisions, projects, etc. for growth in business and/or service delivery.
Future CROs should be future risk visionaries of businesses and be able to advice of the future fit business strategies, decisions and plans in the 4IR wave of doing business.
Although future CROs are not expected to be “Drs Of All Problems and Mr/Ms/Mrs Know It All”, future CROs should be able to know where the business is going and be able to advice throughout the business journey.
The future CROs should be the library of risks and opportunities required to build future proof strategies for successful, growing and service delivery savvy businesses.
Like Artificial Intelligence (AI) and 4th Industrial Revolution, future CROs should:
This means that businesses should understand and put risk management as part and parcel of everything they do lest they fall on a double sharp-edged sword that cut the throats of big businesses such as Bearings Bank, Washington Mutual Bank, VBS Mutual Bank, WorldCom, Enron, Lehman Brothers, Arthur Andersen, etc.
A lot of businesses that are not fine-tuning to the new wave of doing business will suffer the consequences of business intelligence risks such as AI and 4IR in the next ten to fifty years.
These include mostly the labour intensive businesses, ICT businesses that have heavily invested in old ICT Infrastructure, Financial Institutions that are in denial of the arrival of the cryptocurrencies and other disruptive technologies, and so forth.
Likewise, to have future CROs that are equivalent to the old technology and are stuck in the old and safe way of doing business will not survive the use of rapidly evolving and competitive 4IR era of Robotics, AI, Big Data, IoT, etc.
This will be like running a financial institution wherein people queue for cash withdrawals and deposits in this era of EFTs, Banking Apps, Smart Banking, Cradles Transacting, cryptocurrency, virtual banking, etc.
These kinds of future CROs will fall with their business ideas and may find it very difficult to fit anywhere in the future wave of doing business.
Another key question to be answered is “how prepared and advanced will our education system be to ensure that future CROs are relevant and fit into the rapidly changing business environment”.
How will the bridge between our education system and the future wave of doing business be closed in order to supply the business world with the bright minds for future fit CROs.
How prepared and adaptable is the education system to fit the future way of doing business and thus bridging the gap between the demand and the supply for future fit CROs, risk managers and assurance providers.
Let me leave you by saying “If we don’t take care of the future, the future will take care of us and we will suffer the consequences”.
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