In the context of Professor Kallman, risk management is evolving and continuously expanding. The various risk management techniques are developed and researched. Professor Kallman concentrates on an ERM approach to risk management. The risk management is constantly changing and not everyone will openly adopt to any new change. Professor suggests that the risk manager should keep only three questions in mind which are the current position on the S curve, the long term career goals and the procedure to follow so as to reach to the goals. S shaped curve Is followed in many disciplines where the skills of the risk manager will be required to match the goals of the disclipline. One essential is the education of the risk manager that will enhance the risk manager’s value. With constant innovation and education, the risk manager will be able to reach the long term goals and achieve them sooner than expected. The greater the efforts of goal enhancement, the greater will the value of risk manager be. The development of new opportunity plays a crucial role in the innovation of risk manager.
The innovation and expansion of risk management is driven by enterprise risk management. A large part of risk management create new value for organizations. Large as well as smaller companies are forming risk management committees. An important aspect that Professor has suggested is the philosophical change from negative aspect of thinking to positive one. With the inclusion of ERM into the strategic planning process, the upside of risk becomes a priority. By knowing where one stands on the career path which is S shaped, the risk manager is able to know what steps to take so as to reach the career goals. This can be met with self assessment only. Cutting edge skills and knowledge are an added advantage for risk managers. To stay on the top, a risk manager has to have a clear plan of the steps to be taken so as to reach the goals. A well planned career growth will bring about immediate upside. Inclusion of ERM in the career growth will increase the chances of reaching the top sooner than others. By putting in increased efforts, the path can be more rewarding.
In the context of another paper by Mikes, it suggests that many organization come to give a lot of importance to risk management while some organizations are not willing to devote the time and money for it. Some risk managers initially develop the initial risk quantity and then expand into risk diversification which is then balanced by risk adjusted performance. This leads to paying attention at the risks as well as adjusting the behavior of the managers accordingly. Risk based performance is an important aspect of any organization. It can be characterized by risk aggregation and risk quantification. Risk management is usually carried out by the ones who have adequate knowledge and are willing to diversify. Risk management at banks is a distinct and diversified activity which is constantly evolving. Risk management is also affected by the knowledge of the risk managers and their process of working with the organization. For the expansion of risk management techniques, there needs a day to day understanding of the actions and relevant decision making.
The study is based on various banks which provide different methods of risk management. Innovative organizations should adopt information systems which will acknowledge different evolutions in the field of risk management. The field of risk management have the quality to reinvent itself time and again. Basically innovation takes place inside the organization, as the field moves forward, new definitions and new methods will be developed which will give it a whole new meaning.
Both the techniques suggested by the authors are extremely different. No one technique can be a solution. Professor Kallman has provided a long term career goal, which starts as reviewing the current position which is then altered to reach the goals. Many different opinions are available with terms to the risk management techniques. Which one to adopt differs from person to person. If Kallmans techniques are followed, it can lead to benefits on the professional front and also increase the skills and knowledge of the risk manager. On the other hand, organizations have different means of innovations and dealing with risks. All organizations have methods developed to deal with in the field. Long term goals can be achieved by the organizations with continuous improvement and innovation. All the risk managers should be willing to learn as well as unlearn about the techniques and methods.
Risk management is a vast area of study, depending on the aggregate risk and the possibility or risk diversion should a risk manager form his career. One thing that is common in all studies is the continuous need for innovation and learning. Without the efforts of learning new techniques and education there cannot be any possibility of career growth. Learning with an open mind and the willingness to achieve the long term career goals will lead to the achievement of goals in a very short span and provide satisfaction on a personal as well as a professional level. Positive attitude is a must. Turning the negatives into positive is a crucial part of risk management.
Bibliography
Bugalia, J., & Kallman, J. (2012). WHERE ARE YOU on the RISK MANAGEMENT CAREER PATH? ProQuest, 26,28,31.
Mikes, A. (2011). From Counting Risk to Making Risk Count Boundary Work In Risk Management. Harvard Business School, 11-69.
