Gravitas and intellectual muscle to challenge and/or assist colleagues who will typically have in-depth technical knowledge.

What makes a good risk manager?

You have to start with a deep understanding of the subject matter. This is gained through practical experience, education and self study with continuous updates.

What makes a good risk manager?

People and communication skills. All the other traits mean nothing if the risk manager can’t communicate, teach and lead.

What makes a good risk manager?

A good risk manager needs backbone, the willingness to take, and stick with, unpopular positions. Of course, this involves explaining and defending the position, which requires good communication skills.

What makes a good risk manager?

These days risk is everyone’s business. The risk takers have to think like risk managers.

What makes a good risk manager?

Risk management is primarily a people process. People cause 85% – 95% of all losses… so you better be good with people.

What makes a good risk manager?

Analytical skills. Risks can be complex and subtle, so a risk manager needs an analytical mind to help management make solid, evidence-based decisions and demonstrate the ROI from risk management activities.

What makes a good risk manager?

Deep understanding of quantitative models. What are the crucial assumptions? When is the model likely to fail? Remember that all models are wrong, but some are useful.

What makes a good risk manager?

A sceptical, questioning mind. Never be willing to accept things at face value. Be willing to ask why something doesn’t make sense, even if questioning might make you appear stupid sometimes.

What makes a good risk manager?

???

Willingness to get your hands dirty, intellectually speaking. The devil is in the detail.

What makes a good risk manager?

Someone who understands what makes people tick, what their biases are and especially their incentives.

What makes a good risk manager?

1) Remembers, "If it's too good to be true..." 2) Understands that no process is perfect. 3) Knows that there are rarely unforeseen risks if you do the proper diligence. 4) Knows that a good guess is still a guess. 5) Always splits aces and eights.

A good risk manager: