Risk Practitioner Competencies

Question 1

Who sets the overarching requirements for risk practitioner competencies?

Answer 1

Regulators and industry

Question 2

What does the PRA Rulebook for Solvency 2 say about risk management resources within a firm?

Answer 2

A firm must have a risk management function that is structured in way as to facilitate the implementation of the risk management system.

Question 3

What are the EIOPA 2015 requirements for risk management competency?

Answer 3

Guideline 2 - Fit requirements:

Persons running the undertaking or other key functions are ‘fit’ and take account of the respective duties allocated to individual persons to ensure appropriate diversity of qualification, knowledge and relevant experience so that the undertaking is managed and overseen in a professional manner.

Question 4

Which groups can risk management competency frameworks be split into?

Answer 4

1. Technical skills
2. People skills (soft skills)
3. Conceptual skills (RIMS)
4. Core competency skills (RIMS)

Question 5

According to RIMS what are the core competencies?

Answer 5

1. Conceptual skills - planning, organising, decision-making, strategic thinking.
2. Technical skills - risk management process, risk analysis, risk control, ERM, insurance or banking knowledge.
3. Core competency skills - personal, interpersonal and business skills.

Question 6

What are Technical Skills for risk management?

Answer 6

PIML

Planning - evaluating internal context, external context and objectives. Developing risk strategy, risk management policy and common risk language.

Implementation - Design architecture, roles and responsibilities. Develop risk management processes and protocols. Build culture of risk awareness aligned with other management activities.

Measuring - Identify, analyse and evaluate risks and design record keeping procedures. Evaluate the efficiency and effectiveness of existing controls. Facilitate the design and implementation of necessary and cost-effective control improvements.

Learning - Evaluate strategy, policies and processes to introduce improvements. Develop understanding of reporting requirements, design reporting formats and produce appropriate reports.

Question 7

What are the People (soft) skills for risk management?

Answer 7

CRAM

Communication - excellent written and oral skills. 5Cs of communication.

Relationships - networking, influencing, challenging, negotiating, listening, politicking.

Analytical - Strategic thinking, creativity, data handling, research, problem solving, understanding and articulating concepts, challenge presumptions and assumptions to form a common viewpoint.

Management - Time management skills, leadership skills and facilitation skills to set priorities.