What to expect from risk management – or – what is expected from risk management
by risk on mind CEO Stephan Dorner, March 2025
Risk management has long been a critical function in organizations, ensuring that potential pitfalls are identified, assessed, and mitigated. However, a recent conversation with a C-level executive opened my eyes to an evolving expectation for risk managers. This executive posed a thought-provoking question:
“Why do risk managers often misunderstand the needs of the board?”
On one hand, he explained, the board requires clear, concise, and actionable reporting to support decision-making and demonstrate due diligence. On the other hand, risk management must help identify how far the organization can push boundaries to achieve ambitious goals and seize opportunities.
This dual expectation challenges the traditional risk management paradigm, which often focuses heavily on avoiding risks rather than enabling success. It also calls for a reconsideration of how risk managers align their business portfolios with organizational objectives.
A New Perspective: Enabling Success Through Risk Management
To explore this concept further, the executive shared an intriguing analogy.
“Imagine I am a CEO with a vision to travel a long distance by car in the absolute shortest possible time. A typical risk manager might list all the things that could go wrong—breakdowns, traffic jams, accidents—and focus on what to avoid. But the vision of achieving this goal is still in my head, and its realization would set us far ahead of the competition.
Now, think of traffic rules as compliance, radar controls as governance measures, and the car as a vehicle approved by the organization—perhaps not the fanciest, but functional for the task. What I expect from risk management is not a litany of potential obstacles but a roadmap for success. Where are the radar controls? What are the road conditions? Where can we safely speed up or slow down? How do we make the vision a reality while staying within the boundaries?”
This analogy reframes the role of risk managers as enablers rather than gatekeepers. Instead of solely identifying risks, they must offer insights on how to navigate them creatively and strategically, ensuring the organization achieves its objectives without unnecessary roadblocks.
Embracing Opportunities: The Balance of Risks and Rewards
Another critical takeaway from this discussion is the inherent link between risks and opportunities. Often, risk management is perceived as a practice that curtails ambitions, but in reality, risks are born from opportunities. The greater the opportunity, the larger the risks that accompany it.
For instance, in the CEO’s example of driving long distance in the shortest possible time, the opportunity to outpace competitors inherently involves risks. However, if risk managers focus exclusively on the risks, they may inadvertently hinder progress. Instead, by evaluating the feasibility, identifying critical controls, and offering solutions to mitigate risks while enabling the opportunity, risk managers can provide immense value.
This highlights the importance of fostering a culture where opportunities and risks are continuously discussed in tandem. Without pursuing opportunities, risks do not exist—but neither does growth or innovation.
Adjusting the Risk Manager’s Portfolio
These insights lead to a fundamental question: How can risk managers adjust their portfolios to align with these evolving expectations? The answer lies in a mindset shift. Risk management must transition from being reactive to proactive, from avoidance-oriented to solution-oriented. Key elements of this shift include:
- Strategic alignment: Risk managers must understand the organization’s strategic goals and align their practices to support those goals.
- Opportunity-focused analysis: Beyond identifying risks, they should assess how risks can be mitigated to enable opportunities.
- Effective communication: Simplify reporting to ensure the board receives actionable insights that support informed decision-making.
- Creative problem-solving: Adopt innovative approaches to overcoming obstacles, emphasizing solutions over restrictions.
Join the Conversation
This new vision for risk management is both inspiring and challenging. It requires a blend of technical expertise, strategic thinking, and creativity to move beyond traditional risk-averse approaches.
As professionals in this field, how can we better meet the expectations of boards and executives? What steps can we take to become enablers of success rather than being perceived as barriers?
I invite you to share your thoughts, experiences, and ideas on our LinkedIn Profile. Let’s open a discussion about the evolving role of risk management and how we can collectively redefine its value in today’s dynamic business environment.
