What is risk advisory?

Risk advisory helps organisations to identify, manage and prepare for risk, as well as develop strategies to minimise risk. This covers a number of different areas, including operational risk, strategic and reputational risk, cyber & technology risk, regulatory risk and financial risk.

What does a risk advisory professional do?

Risk advisory professionals help businesses understand the likelihood and impact of risk on its operations, advise them how to effectively mitigate these risks and assist them with making informed and intelligent decisions around their business processes, technology and operations. Based on a strong understanding of the commercial and risk environment in which the business operates, Risk advisory professionals play an important role in advising on and developing an appropriate control environment at the organisation.

Key responsibilities

Responsibilities will vary depending on the area of risk covered, but may include:

  • Participating in or leading engagements related to the design and implementation of risk management applications and processes.
  • Understanding and applying fundamental risk management principles
  • Identifying and prioritising immediate and potential future risks, and addressing these pro-actively.
  • Researching industry leading practices related to governance, risk, and compliance.
  • Using industry-leading data and analytics to evaluate exposure and risk management gaps.
  • Enhancing or updating risk management policies and procedures.
  • Implementing the latest tools and technologies to protect and add value to the business.
  • Analysing and interpreting complex risk regulations.
  • Ensuring clients are compliant with upcoming legislation – interviewing key stakeholders and assessing current processes.

Why are they important?

Managing risk well is strategically important and vital to the success of any business. As well as ensuring business resiliency, it allows companies to take advantage of emerging opportunities and meet overall business goals

Skills needed for this role

Risk advisory professionals require an intimate sector understanding and a fundamental knowledge of relevant regulatory requirements. Strong interpersonal, communication and influencing skills are also essential in order to liaise effectively with stakeholders. Strong analytical and planning skills are also advantageous.

Career opportunities presented by this role

There are a number of different areas of risk, offering a huge breadth of career options. In larger organisations, such as the Big 4, opportunities for progression are excellent and engagements will likely involve global clients.

Competencies

High level competencies required include:

  • Advisory and consultancy

    A. Gathers and understands financial and non-financial information to develop complete knowledge of the client business and the environment in which it operates.

    B. Provides expert advice that will add value to the business and gain advantage.

    C. Identify and advise on business partnering to develop strategic relationships to create opportunities, improve performance and solve business problems.

    D. Prepare and present business plans and advise on the actions to implement these plans.

  • Audit and assurance

    A. Advises on and communicates effectively the role and scope of audit and assurance engagements to relevant stakeholders.

    B. Applies regulatory, legal, professional and ethical standards relating to audit and assurance engagements.

    C. Plans and prepares for audit and assurance engagements.

    D. Performs effective audit, and assurance engagements.

    E. Reviews and reports on the findings of audit and assurance engagements.

    F. Guiding efficient and effective operations.

  • Governance, risk and control

    A. Evaluates organisational structures and governance to protect the long-term interests of stakeholders.

    B. Recommends appropriate strategies to ensure adherence to governance structures and application of best practice internal controls.

    C. Identifies and manages risk appropriately.

    D. Uses risk management for the best interests of an organisation and its stakeholders.

    E. Monitors and applies relevant legislation, policies and procedures.
     

  • Stakeholder relationship management

    A. Positively develops relationships with internal and external stakeholders.

    B. Communicates and gains commitment from internal and external stakeholder.

    C. Uses emerging technologies to collaborate and communicate effectively with stakeholders.

    D. Applies professional and ethical judgement when engaging with stakeholders.

    E. Aligns organisational strategic objectives with stakeholder needs and manages expectations.
     

  • Strategy and innovation

    A. Applies business acumen and commercial awareness to deliver business objectives.

    B. Recommends a range of suitable strategic options from which to develop sustainable plans and objectives.

    C. Evaluates, justifies and implements suitable strategic options.

    D. Adopts and applies innovative methods to implement strategy and manages change.