Simon Grima: More complex risks mean bigger role for risk managers

As businesses face increasingly complex risks—ranging from cyber threats to climate change—there’s an ever-greater need for risk management to be seen as a mature, specialised discipline, Professor Simon Grima, a board member of the Federation of European Risk Management Associations (FERMA) and co-chair of its Rimap Steering Committee, told FERMA Forum Today. 

“The risk management function enhances credibility, trust, and strategic relevance,” said Grima, who is also head of the Department of Insurance and Risk Management and deputy dean of the Faculty of Economics, Management and Accountancy at the University of Malta. 

He added that professional certifications like Rimap or other recognised qualifications help standardise knowledge, set expectations for competency, and signal a commitment to ethics, responsibility and continuous improvement. 

“Without a recognised level of professionalism, the risk management function could be perceived as reactive or narrowly operational, instead of being a core strategic function, which limits its influence in proactively guiding business decisions to ensure one reaches objectives with the least of potential disruption,” Grima said. 

The Rimap certification was first introduced by FERMA in 2015. Its aim was to offer risk practitioners the opportunity to gain a formal qualification at a European level, providing credibility through a standardised competency framework. 

The programme also aligns with the European regulatory and business contexts and spans the full risk framework, from risk assessment through to crisis management. Through Rimap, practitioners are offered a clear professional benchmark. 

Its success to date is reflected in the increasing adoption of the programme across the industry. It is also recognised by FERMA’s 23 national associations as a mark of excellence in the profession.

But Grima also notes that FERMA recognises that any certification process must be underpinned by a comprehensive range of ongoing professional development opportunities. 

“The risk management environment is in a constant state of evolution and revolution as highlighted by the FERMA Forum, and risk managers are faced with changing and emerging exposures,” he said. 

“To ensure we maintain a continuous learning process, we offer professionals the opportunity to participate in conferences, meetings and courses organised by the federation, its members, other associations and partners, to ensure they are always abreast of the latest developments.” 

The value of risk 

In addition to the credibility gained through such qualifications, he also cites a more fundamental issue that needs addressing in many companies: around the very definition of the role of the risk manager, including in the eyes of the C-suite, which could make it a more prominent role. 

“More work needs to be done to define the risk manager’s role effectively,” he said. “Often, risk management is seen as primarily focused on compliance or loss prevention, rather than a function that drives value and contributes to the strategic direction of the company. 

“To make it a more prominent role, risk managers need to be involved in high-level strategic conversations, emphasising how the risk management function enables the business to achieve its objectives safely while seizing opportunities. A clearer definition of the role could help highlight how this function intersects with corporate governance, strategy development, and innovation, making it indispensable to the C-suite.” 

The Great Retirement 

Such initiatives become more important than ever when you consider some of the wider threats facing risk management as a profession. One of these is the so-called Great Retirement, the phenomenon whereby many older workers have chosen to opt out of paid work having apparently reevaluated their priorities during COVID, though the exact reasons behind it are disputed. 

Grima said that the risk management profession is exposed to the Great Retirement as much as any industry as many seasoned professionals reach retirement age. But he warns on the consequences of this loss of talent. 

“The potential loss of expertise is significant because the risk management function often requires years of experience to fully understand how to assess and mitigate complex, evolving risks,” he said. 

“Leveraging technology such as AI and data analytics can help bridge some of the gaps left by retiring professionals.”

“To harness this expertise, organisations should focus on knowledge transfer through mentorship programmes, developing structured handover processes, and capturing institutional knowledge in formal systems. 

“Additionally, leveraging technology such as AI and data analytics can help bridge some of the gaps left by retiring professionals by automating and streamlining certain risk management processes.” 

Another way of alleviating such risks is by simply attracting new talent into the market. He said that while risk managers enter the field from a variety of backgrounds— insurance, finance, operations, compliance, economics, accountancy and audit management—there’s often no well-defined pathway for new professionals. 

“Creating clearer entry points, such as internships, apprenticeships, university courses, and certification programmes tailored for aspiring risk managers, would help draw in younger talent,” he said. 

“Furthermore, raising awareness about the diverse opportunities within risk management—from financial risks, operational risks to enterprise risk management and emerging risks like cybersecurity and digitalisation—could make the field more appealing.” 

In conclusion, he acknowledged that there are challenges facing the profession—but also highlighted the many opportunities and solutions. A sustainable risk management profession is also important in the wider context of business and the economy, he said. 

“In summary, professionalism, clarity of the risk management role, the effects of the Great Retirement, and structured career paths are all crucial elements to ensure the growth and sustainability of the risk management function and thereby the economy, environment and society.” 

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

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