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I’ve done a fair share of hiring risk managers for myself and sometimes when friends CROs ask me to interview some candidates for them. I strongly believe these are the qualities a good risk manager should have. I am also one of the rare people who think accountants and lawyers do not turn into good risk managers, 99% of the time. Here are the questions I like to ask. Let me know how many would you feel comfortable answering right now and what other questions would you ask in the comments.

Profit and revenue growth

• How can your risk analysis help us identify potential opportunities or threats that could impact our revenue growth? Ask RAW@AI for a good 💡 answer. 
• Can you share an example where your risk insights significantly improved a company’s profitability?

Cost efficiency

• How can you use risk management to identify and eliminate unnecessary costs while ensuring we remain compliant and efficient? Ask RAW@AI for a good 💡 answer. 
• How have you helped a company save costs through better understanding and managing uncertainties? This one is a favourite of mine and something that got me named Risk Manager of the Year by FERMA in 2021.

Strategic goals

• How do you increase the chance of achieving strategic goals by managing uncertainties in the market?
• Can you provide an example of how your risk assessment influenced a strategic decision?

Operational efficiency

• How can you help us streamline our operations to reduce disruptions and improve productivity? This is area is a huge opportunity for organisations to overcome “flaw of averages”
• How can you use risk management techniques to identify operational bottlenecks or inefficiencies?

The “flaw of averages” refers to the common mistake, popularised by Sam Savage, of using average values to make decisions under uncertainty, which often leads to incorrect conclusions. Here’s a simple explanation:

• Imagine you are planning a project and estimate that, on average, it will take 10 days to complete. If you plan everything based on this single average value, you might overlook the reality that the project could take 5 days (if everything goes perfectly) or 15 days (if there are delays).
• By focusing only on the average, you ignore the variability and range of possible outcomes. This can lead to missed deadlines, budget overruns, or other unexpected outcomes.

In essence, the flaw of averages means that relying on average values alone can give a false sense of certainty and result in poor decision-making. Instead, it’s crucial to consider the full range of possible outcomes and their probabilities to manage uncertainty effectively.

Compliance and governance 

• How can you insure we have necessary risk disclosures and risk reporting without creating unnecessary bureaucracy? Ask RAW@AI for a good 💡 answer. 
• What are some of the legal requirements that are relevant for our industry?

Want to hire good risk managers? Come to RAW2024 to network with some of the best risk specialists.