The evolution of risk management

Summary

The role of Chief Risk Officers (CROs) has become increasingly significant across industries, as organizations shift towards an integrated approach to risk management. Since 1985, RIMS has evolved from a focus on insurance to a broader perspective on managing enterprise-wide risks. In a conversation with Mary Roth, Executive Director of RIMS, she highlights the growing complexity of risk management, from insurance policies to loss prevention, setting risk tolerance, and managing emerging risks. The RIMS annual conference remains a vital networking platform for professionals to meet face-to-face, share knowledge, and stay ahead in an ever-changing risk landscape.

Takeaways

• 😀 The role of the Chief Risk Officer (CRO) has become increasingly important in organizations across various sectors.
• 😀 In 2002, 65% of surveyed companies had a Chief Risk Officer, and by 2010, this number increased to 86%.
• 😀 RIMS (Risk and Insurance Management Society) has been advancing risk management practices since 1950.
• 😀 The RIMS annual conference, running from April 15th through 18th in Philadelphia, serves as a major networking and educational event.
• 😀 Mary Roth, the Executive Director of RIMS, has seen significant changes in the risk management industry since joining in 1985.
• 😀 Risk management has shifted from being insurance-focused to a more integrated approach, where it is part of overall enterprise management.
• 😀 One of the key tasks of risk managers is ensuring that everyone within an organization understands risk and uses risk management in their decision-making.
• 😀 Risk management is no longer just about purchasing insurance policies but also about prevention, loss control, and assessing risk tolerance levels.
• 😀 The importance of identifying emerging risks and scanning for them has increased significantly over the years.
• 😀 The RIMS conference continues to evolve, focusing on the most relevant topics, but one consistent element is the need for face-to-face interactions among risk professionals and industry peers.

Q & A

How has the role of the Chief Risk Officer (CRO) evolved over time?

The role of the Chief Risk Officer has become increasingly important across organizations in various sectors. Initially, many companies had the CRO in a risk committee or subgroup within a larger department, but now it is a more prominent and integral role in managing enterprise-wide risks.

What did the 2002 study on Chief Risk Officers reveal?

The 2002 study found that 65% of surveyed companies had a Chief Risk Officer or an equivalent role. By 2010, this number had increased to 86%, indicating the growing importance of risk management in organizations.

What is the focus of the Risk and Insurance Management Society (RIMS)?

RIMS has been working to advance the practice of risk management across all sectors. It provides a platform for networking, education, and the development of risk management practices through its annual conferences and other initiatives.

What is the significance of RIMS' annual conference?

RIMS' annual conference, which has been held for 50 years, serves as a networking and educational forum for thousands of industry professionals. It provides opportunities for attendees to stay updated on emerging risks and best practices in risk management.

What changes has Mary Roth observed in the industry during her career?

Mary Roth has observed a shift in the risk management field, with a move from a heavy focus on insurance to a more integrated, enterprise-wide approach. Risk management is now seen as a key part of business decision-making across all levels of an organization.

How has the scope of risk management changed in organizations?

Risk management has expanded beyond just purchasing insurance. It now includes aspects such as loss prevention, risk assessment, setting risk tolerance levels, and helping companies understand their risk appetite. Risk management is now integral to making strategic business decisions.

What role does RIMS play in helping its members?

RIMS supports its members by providing a platform for education, networking, and professional development. Through its events and resources, RIMS helps risk professionals stay informed about emerging risks and share best practices with industry peers.

Why is face-to-face interaction important for risk professionals at the RIMS conference?

Face-to-face interaction remains crucial for risk professionals as it allows them to discuss challenges, share insights, and build connections with peers both within and outside their immediate focus area, such as claims, business continuity, or supply chain management.

What is one constant theme throughout the years of RIMS conferences?

One consistent theme at RIMS conferences has been the need for risk professionals to meet face-to-face with other industry professionals. This networking opportunity helps foster collaboration and exchange of knowledge among attendees.

How does RIMS adapt to changing demands in the risk management field?

RIMS continually evolves its conference and educational programs to keep up with the changing demands of the risk management profession. The conference program committee ensures that relevant and timely topics are addressed to meet the needs of attendees.