Change management vital for future success

Risk managers can strengthen change management by boosting confidence in risk assessments, improving strategy execution, and championing a shift in mindset within their organisations—provided they approach change management correctly.

This was the message from the opening panel on the second day of the FERMA Forum 2024 conference in Madrid on October 22.

Moderated by Alessandra Carpi from DSM-Firmenich, the panel featured Sonia Cambier of SOLVAY, Melody Miller and Samantha Nowell of Sea Change London, and Benno Reischel, Former Head of Europe at Lloyd’s of London, now at CopperMoonConcept.

The panel discussed the expanding role of risk managers in a complex global environment. Today's risk landscape presents multifaceted challenges, including regulatory changes, supply chain disruptions from global conflicts, energy crises, pandemics, and the rise of cybercrime. These developments require greater adaptability in managing risks, and the interaction between various threats is becoming more complex, necessitating a holistic approach to risk management.

Risk leaders must navigate resistance to change within organisations while their own roles continue to evolve, particularly in the wake of crises like the COVID-19 pandemic, the speakers on the panel all agreed. They are tasked not only with identifying risks but also with ensuring their organisations can adapt and mitigate those risks effectively. They must secure adequate resources, often facing limitations in terms of data management and compliance, such as the need for Corporate Social Responsibility (CSR) expertise. Communication becomes essential for gaining buy-in from senior leadership, effectively managing stakeholders, and ensuring alignment on the necessity of risk mitigation efforts. 

Clear reporting mechanisms are essential to track the progress of change initiatives, ensuring consistency in communication from leadership down to operational teams. Change management, the speaker emphasised, should be embedded into the organisation to ensure long-term success. A key challenge lies in the post-implementation phase: sustaining the change and ensuring that employees adapt to new processes or structures. Ongoing training, support, and regular progress reviews are necessary to evaluate the success of these initiatives and make necessary adjustments. 

Real-world examples were discussed, such as the complexities of Brexit and how organisations like Lloyd’s adapted by establishing a new insurance entity in Brussels. This demonstrated the critical role of political, legal, and economic drivers in risk management. Lloyd's had to navigate the loss of regulatory licenses and work with multiple syndicates, regulators, and brokers to ensure continuity in the EU. 

Another example highlighted challenges faced during a corporate spin-off, where communication, stakeholder engagement, and emotional resilience were paramount. The project required constant interaction with investors and senior management to maintain alignment, while employees dealt with the emotional impact of such a significant corporate restructuring. 

Key success factors for these change initiatives included transparent communication, stakeholder engagement, and involving external partners, such as regulators and government officials. HR also played a vital role in supporting staff through transitions. Overall, the panel stressed that strong leadership, clear communication, and emotional intelligence are critical for navigating complex, high-stakes changes in risk management. 

FERMA Forum Today is in partnership with Captive Review, part of Newton Media.

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